Toronto - The Canadian Securities Administrators (CSA) are publishing for a second comment period, proposed amendments to National Instrument 31-103 (pdf - 857 KB)This link will open in a new windowRegistration Requirements, Exemptions and Ongoing Registrant Obligations, 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:

Carolyn Shaw-Rimmington
Commission des valeurs mobilières de l'Ontario

Sylvain Théberge
Autorité des marchés financiers
514 940-2176

Richard Gilhooley
British Columbia Securities Commission
604 899-6713

Mark Dickey
Alberta Securities Commission
403 297-4481

Ainsley Cunningham
Commission des valeurs mobilières du Manitoba
204 945-4733

Wendy Connors-Beckett
Commission des valeurs mobilières
du Nouveau-Brunswick
506 643-7745

Shirley Lee
Nova Scotia Securities Commission

Dean Murrison
Saskatchewan Financial Services Commission

Janice Callbeck
PEI Securities Office
Office of the Attorney General
902 368-6288

Doug Connolly
Financial Services Regulation Div.
709 729-2594

Helena Hrubesova
Registraire des valeurs mobilières
867 667-5466

Louis Arki
Bureau des valeurs mobilières
867 975-6587

Donn MacDougall
Bureau des valeurs mobilières
Territoires du Nord-Ouest
867 920-8984