TORONTO, Sept. 19, 2013 /CNW/ - The Investment Funds Institute of Canada (IFIC) released a statement today commending the Ministers of Finance of British Columbia, Ontario and Canada on reaching an agreement to establish a cooperative capital markets regulatory system. IFIC joins these ministers in encouraging other provinces and territories to participate in the proposed system.
"The mutual funds industry already benefits from a highly harmonized regulatory environment through the Canadian Securities Administrators' national instruments," said IFIC president and CEO Joanne De Laurentiis. "Based on the Ministers' stated intention to preserve the elements of the current system that work well, we are optimistic that the new entity should be able to integrate the current set of national instruments into an effective, more streamlined framework."
IFIC welcomed several of the key elements included in today's announcement, including the creation of a uniform Act administered centrally, legislative accountability, an independently nominated expert board, and a degree of ministerial oversight.
In past discussions with the Canadian Securities Transition Office and ministers about the potential for a national body, IFIC has emphasized several elements as critical for the mutual fund industry in the design of any new national body, i.e., retention of the specialized regulation of mutual funds in a nationally harmonized manner; internal staff expertise; senior management and board representatives with knowledge of the mutual funds industry, and a simple fee payment system fairly allocated among market participants that does not result in higher fees for fund firms and investors.
If there are provinces that choose not to participate in a common structure, it is important that a workable interface is created between participating and non-participating provinces. For efficient capital markets, and an investor-responsive regulatory system, the regulatory process must remain cooperative and harmonized regardless of its structure.
"We look forward to contributing to future discussions on the structure of this new entity as it will apply to mutual funds, as well as implementation and transition," Ms. De Laurentiis said. "A smooth transition to a more seamless, accountable and cost-effective regulatory framework for mutual funds holds potential benefits for both the industry and its investors," she added.
The Investment Funds Institute of Canada is the voice of Canada's investment funds industry. IFIC brings together 150 organizations, including fund managers and distributors and industry service organizations, to foster a strong, stable investment sector where investors can realize their financial goals. By connecting Canada's savers to Canada's economy, our industry contributes significantly to Canadian economic growth and job creation. The organization is proud to have served Canada's mutual fund industry and its investors for more than 50 years.
SOURCE: Investment Funds Institute of Canada
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