Canadian Securities Administrators Publish Final Amendments Mandating a CSA Mutual Fund Risk Classification Methodology for Use in Fund Facts and ETF Facts

MONTREAL, Dec. 8, 2016 /CNW Telbec/ - The Canadian Securities Administrators (CSA) today published final amendments that require fund managers to use a standardized CSA mutual fund risk classification methodology (Methodology) to determine the investment risk level of conventional mutual funds and exchange-traded mutual funds (ETFs) (collectively referred to as "mutual funds") in the Fund Facts and ETF Facts, respectively.

Currently, fund managers must identify a mutual fund's risk level on a five-category scale (ranging from Low to High) prescribed in the Fund Facts, and the Methodology is chosen at the fund manager's discretion.

"We think that a mandated standardized risk classification methodology will provide for greater transparency and consistency of investment risk levels across mutual funds," said Louis Morisset, Chair of the CSA and President and CEO of the Autorité des marchés financiers. "The use of such a methodology will allow investors to more readily compare the investment risk levels of different mutual funds."

The CSA published for comment proposed amendments introducing the Methodology in December 2015 (the "2015 Proposal"). The majority of commenters supported the implementation of a standardized and mandatory risk classification methodology to determine a mutual fund's investment risk level on the risk scale in the Fund Facts and the ETF Facts. After considering the comments received, the CSA made some non-material changes to the 2015 Proposal.

Provided all necessary Ministerial approvals are obtained, the amendments will come into force on March 8, 2017. Starting September 1, 2017, the investment risk level of conventional mutual funds and ETFs must be determined by using the Methodology for each filing of a Fund Facts or ETF Facts, and at least annually.

In a separate release published today, the CSA also announced the publication of final amendments mandating a summary disclosure document and delivery regime for ETFs.

All of the above amendments can be found on CSA members' websites.

The CSA, the council of the securities regulators of Canada's provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.

For more information:                                                                                                                     

Sylvain Théberge

Nicole Tuncay

Autorité des marches financiers

Alberta Securities Commission

514-940-2176

403-297-4008



Alison Walker

Kristen Rose

British Columbia Securities Commission

Ontario Securities Commission

604-899-6713

416-593-2336 



Jason (Jay) Booth

Andrew Nicholson

Manitoba Securities Commission

Financial and Consumer Services

204-945-1660

Commission, New Brunswick

506-658-3021




Jane Anderson

Janice Callbeck          

Nova Scotia Securities Commission

Office of the Superintendent of Securities    

902-424-0179

P.E.I.


902-368-6288 



John O'Brien

Rhonda Horte

Office of the Superintendent of Securities

Office of the Yukon Superintendent of

Newfoundland and Labrador

Securities        

709-729-4909

867-667-5466



Jeff Mason

Tom Hall

Nunavut Securities Office

Office of the Superintendent of Securities

867-975-6591

Northwest Territories


867-767-9305



Shannon McMillan


Financial and Consumer Affairs


Authority of Saskatchewan   


306-798-4160


 

SOURCE Autorité des marchés financiers

For further information: Sylvain Théberge, Autorité des marches financiers, 514-940-2176; Nicole Tuncay, Alberta Securities Commission, 403-297-4008; Alison Walker, British Columbia Securities Commission, 604-899-6713; Kristen Rose, Ontario Securities Commission, 416-593-2336; Jason (Jay) Booth, Manitoba Securities Commission, 204-945-1660; Andrew Nicholson, Financial and Consumer Services, Commission, New Brunswick, 506-658-3021; Jane Anderson, Nova Scotia Securities Commission, 902-424-0179; Janice Callbeck, Office of the Superintendent of Securities, P.E.I., 902-368-6288; John O'Brien, Office of the Superintendent of Securities, Newfoundland and Labrador, 709-729-4909; Rhonda Horte, Office of the Yukon Superintendent of Securities, 867-667-5466; Jeff Mason, Nunavut Securities Office, 867-975-6591; Tom Hall, Office of the Superintendent of Securities, Northwest Territories, 867-767-9305; Shannon McMillan, Financial and Consumer Affairs, Authority of Saskatchewan, 306-798-4160

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