Canadian Securities Regulators Take Steps to Improve Mutual Fund Disclosure for Investors

    TORONTO, June 19 /CNW/ - The Canadian Securities Administrators (CSA)
today published for comment proposed amendments to National Instrument 81-101
Mutual Fund Prospectus Disclosure, its Forms and Companion Policy, as well as
related amendments, that are aimed at providing investors with improved
disclosure about mutual funds.
    This publication is the first step in implementing the point-of-sale
disclosure framework published in October 2008 by the Joint Forum of Financial
Market Regulators, which includes the CSA. Under the framework, investors
would receive key information about a mutual fund at a time that is relevant
to their investment decision. Investors currently receive a simplified
prospectus up to two days after buying a mutual fund.
    "Mutual funds are required to disclose a great deal of information, but
we know that many investors do not use this information when making purchase
decisions," said Jean St-Gelais, CSA Chair and President & Chief Executive
Officer of the Autorité des marchés financiers. "The current market conditions
highlight the need for investors to fully understand what they are buying. 
This significant investor protection initiative will provide investors with
the opportunity to make more informed investment decisions."
    Central to the proposal is a new two-page document called Fund Facts. The
Fund Facts will be written in plain language and in a format that is easy to
read and understand. It highlights important information for investors,
including what the mutual fund invests in, the risks and the costs of buying
and owning the mutual fund.
    Under the proposal, investors would receive a Fund Facts when they buy a
mutual fund they do not currently own. The simplified prospectus and other
disclosure will also be available to investors upon request.
    Copies of the proposed rule amendments and additional background
information are available on the websites of CSA members. The CSA is seeking
input from all stakeholders on the proposals. The comment period is open until
October 17, 2009.
    The CSA, the council of securities regulators of Canada's provinces and
territories, coordinates and harmonizes regulation for the Canadian capital

For further information:

For further information: Carolyn Shaw-Rimmington, Ontario Securities
Commission, (416) 593-2361; Mark Dickey, Alberta Securities Commission, (403)
297-4481; Ainsley Cunningham, Manitoba Securities Commission, (204) 945-4733;
Natalie MacLellan, Nova Scotia Securities Commission, (902) 424-8586; Janice
Callbeck, PEI Securities Office, Office of the Attorney General, (902)
368-6288; Fred Pretorius, Yukon Securities Registry, (867) 667-5225; Donn
MacDougall, Northwest Territories, Securities Office, (867) 920-8984; Sylvain
Théberge, Autorité des marchés financiers, (514) 940-2176; Ken Gracey, British
Columbia Securities Commission, (604) 899-6577; Wendy Connors-Beckett, New
Brunswick Securities Commission, (506) 643-7745; Barbara Shourounis,
Saskatchewan Financial Services Commission, (306) 787-5842; Doug Connolly,
Financial Services Regulation Div., Newfoundland and Labrador, (709) 729-2594;
Louis Arki, Nunavut Securities Office, (867) 975-6587

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