Securities

Toronto - The Canadian Securities Administrators (CSA) announced today a request for proposals (RFP) to conduct research on Canada's mutual fund fee structure. This marks an important step in advancing a policy decision on mutual fund fees, further to the CSA's examination of the mutual fund fee structure in Canada.

In December 2012, the CSA published a Discussion Paper that identified potential investor protection issues arising from Canada's current mutual fund fee structure. Following comments received on the Discussion Paper, the CSA conducted extensive stakeholder consultations, including a public roundtable on June 7, 2013, and discussion forums in the summer and fall of 2013. As a result of the consultations, the CSA has decided that third-party research would provide important information in determining whether regulatory action is needed.

Firms are invited to submit proposals for two independent pieces of research to evaluate the extent, if any, to which:

  1. Sales and trailing commissions influence fund sales.
  2. The use of fee-based vs. commission-based compensation changes the nature of advice and investment outcomes over the long term.

Interested firms should respond to the RFP (Reference # OSC201314M-93) by 2:00 p.m. EST on May 5, 2014. The RFP is available through MERX (Reference # 291559) at www.merx.com or 1-800-964-6379.

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

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For more information:

Carolyn Shaw-Rimmington
Ontario Securities Commission
416-593-2361

Mark Dickey
Alberta Securities Commission
403-297-4481

Richard Gilhooley
British Columbia Securities Commission
604-899-6713

Sylvain Théberge
Autorité des marchés financiers
514-940-2176

Kevan Hannah
Manitoba Securities Commission
204-945-1513

Wendy Connors-Beckett
Financial and Consumer Services Commission
New Brunswick
506-643-7745

Tanya Wiltshire
Nova Scotia Securities Commission
902-424-8586

Janice Callbeck
Office of the Superintendant of Securities
PEI
902-368-6288

Don Boyles
Office of the Superintendent of Securities
Newfoundland and Labrador
709-729-4501

Rhonda Horte
Office of the Yukon Superintendent of Securities
867-667-5466

Louis Arki
Nunavut Securities Office
867-975-6587

Ann Hall
Northwest Territories Securities Office
867-920-3318

Daniela Machuca
Financial and Consumer Affairs
Authority of Saskatchewan
306-798-4160