CSA

Toronto - The Canadian Securities Administrators (CSA) are publishing for a second comment period, proposed amendments to National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations,(pdf - 713 KB)This link will open in a new window which would require registered dealers and advisers to provide investors with clear and meaningful information on the costs and performance of their investments.

This Proposal includes, among other things, requirements for registered dealers and advisers to provide their clients with annual reports that show them:

  • in dollars, what the dealer or adviser was paid for the products and services it provided, and
  • in dollars and percentages, how the client's investments performed during that year and over longer periods

In June 2011, the CSA initially published the Proposal based on consultation with investors and industry. Approximately 2,000 investors were surveyed and document testing sessions were held to gain better insight into investors' understanding and expectations related to fees, performance measurement and reporting.

After reviewing public comments on the 2011 Proposal, conducting additional investor research and industry consultation, the CSA are now proposing some enhancements and added requirements to the 2011 Proposal, which include:

  • disclosing some fixed income commissions to provide more clarity about embedded fees charged to investors;
  • expanding the scope of account statements to provide more complete information to investors
  • establishing a standardized method for determining the market value of securities to ensure consistency in reporting to investors; and,
  • disclosing the costs and risks that are unique to scholarship plan investments.

This is an important investor protection initiative that aims to help investors better understand the costs and performance of their investments, said Bill Rice, Chair of the CSA and Chair and Chief Executive Officer of the Alberta Securities Commission. With the proposed changes, investors will be able to better assess their progress towards meeting their financial goals and the value of the professional advice they receive.

The Notice, Request for Comment and reports on the investor surveys and document testing will be available on CSA members' websites. The comment period is open until September 14, 2012.

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

Summary of Proposed Changes to National Instrument 31-103

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For more information:

CSA member name

Point of contact

Phone number

Alberta Securities Commission

Mark Dickey

403-297-4481

Autorité des marchés financiers

Sylvain Théberge

514-940-2176

British Columbia Securities Commission

Richard Gilhooney

604-899-6577

Financial Services Regulation Div. Newfoundland and Labrador

Doug Connolly

709-729-2594

Manitoba Securities Commission

Ainsley Cunningham

204-945-4733

New Brunswick Securities Commission

Wendy Connors-Beckett

506-643-7745

Northwest Territories Securities Office

Donn MacDougall

867-920-8984

Nova Scotia Securities Commission

Shirley Lee

902-424-5441

Nunavut Securities Office

Louis Arki

867-975-6587

Ontario Securities Commission

Carolyn Shaw-Rimmington

416-593-2361

PEI Securities Office, Office of the Attorney General

Janice Callbeck

902-368-6288

Saskatchewan Financial Services Commission

Dean Murrison

306-787-5879

Yukon Securities Registry

Helena Hrubesova

867-667-5466