TORONTO, June 13, 2013 /CNW/ - The Canadian Securities Administrators
(CSA) today published amendments to National Instrument 81-101 Mutual Fund Prospectus Disclosure (NI 81-101) and related consequential amendments, which will require
delivery of the Fund Facts document for mutual funds instead of the
simplified prospectus to satisfy the prospectus delivery requirements.
The Fund Facts is a document written in plain language, no more than two
pages double-sided and highlights key information about a mutual fund
that research by the CSA has identified as important to investors. As
of January 1, 2011, the Fund Facts has been required to be made
available to investors on request or on the mutual fund's or mutual
fund manager's website. The amendments published today further advance
this important investor-focused initiative by requiring that the Fund
Facts be delivered to investors instead of the simplified prospectus,
giving investors enhanced access to more meaningful and effective
disclosure about their mutual funds.
As part of its next steps, the CSA will work on requirements that would
implement delivery of the Fund Facts at the point of sale for mutual
"Requiring the delivery of the Fund Facts will give investors access to
key information about the potential benefits, risks and costs of mutual
funds, which will assist them in making more informed and confident
investment decisions," said Bill Rice, Chair of the CSA and Chair and
CEO of the Alberta Securities Commission.
When the amendments were published for comment in June 2012, the CSA
committed to testing the Fund Facts with investors before finalizing
the document. Informed by the investor feedback, changes were made to
enhance the presentation of risk, cost and performance disclosure in
the Fund Facts. These changes to the Fund Facts form will take effect
January 13, 2014.
The requirement to deliver the Fund Facts to satisfy the prospectus
delivery requirements, will take effect June 13, 2014, one year from
the time of publication of this Notice. However, the CSA continues to
encourage early adoption of the delivery of the Fund Facts instead of
the prospectus, in order to assist investors in their decision-making
process and in discussions with their financial advisors.
The Notice can be found on CSA members' websites.
The CSA, the council of securities regulators of Canada's provinces and
territories, coordinates and harmonizes regulation for the Canadian
SOURCE: Canadian Securities Administrators
For further information:
Ontario Securities Commission
Autorité des marchés financiers
The Manitoba Securities Commission
Nova Scotia Securities Commission
The Office of the Superintendent of Securities, P.E.I.
Office of the Yukon Superintendent of Securities
Northwest Territories Securities Office
Alberta Securities Commission
British Columbia Securities Commission
New Brunswick Securities Commission
Financial and Consumer Affairs
Authority of Saskatchewan
Financial Services Regulation Division of
Securities, P.E.I. Newfoundland and Labrador
Nunavut Securities Office