Canadian securities regulators propose pre-sale delivery of Fund Facts for mutual funds



Toronto - The Canadian Securities Administrators (CSA) today published for a second comment period, proposed amendments to National Instrument 81-101 Mutual Fund Prospectus Disclosure(pdf - 433 KB)This link will open in a new windowUpdated on March 25, 2014Point of Sale delivery of Funds Facts (NI 81-101), which would require a Fund Facts document to be delivered to investors before they buy a mutual fund.

Central to the proposal is the Fund Facts document. It is written in plain language, no more than two pages double-sided, and highlights key information that is important to investors, including risk, past performance and the costs of investing in a mutual fund.

Initially published for comment in 2009, today's proposal represents the third and final stage of the implementation of the CSA's point-of-sale disclosure regime for mutual funds. To address operational and compliance issues raised on the 2009 proposal, and to allow for further stakeholder consultation, the CSA took a staged approach to the delivery of the Fund Facts.

Stage one, which came into force on January 1, 2011, required the Fund Facts document to be made available to investors online or upon request.  Effective June 13, 2014, stage two requires delivery of the Fund Facts instead of the simplified prospectus to satisfy prospectus delivery requirements. Currently, a prospectus must be delivered to investors within two days of buying a mutual fund.

Requiring pre-sale delivery of the Fund Facts document is an important investor protection initiative as it will give investors a better opportunity to make informed investment decisions, said Bill Rice, Chair of the CSA and Chair and CEO of the Alberta Securities Commission.

As part of the final steps in stage three, the CSA expects to publish for comment a summary document for exchange-traded funds that is similar to the Fund Facts.

The proposed amendments to NI 81-101 are available on CSA member websites. The comment period is open until May 26, 2014.

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

Mark Dickey
Alberta Securities Commission

Richard Gilhooley
British Columbia Securities Commission

Sylvain Théberge
Autorité des marchés financiers

Kevan Hannah
Manitoba Securities Commission

Wendy Connors-Beckett
Financial and Consumer Services Commission
New Brunswick

Tanya Wiltshire
Nova Scotia Securities Commission

Janice Callbeck
Office of the Superintendant of Securities

Don Boyles
Office of the Superintendent of Securities.
Newfoundland and Labrador

Rhonda Horte
Office of the Yukon Superintendent of Securities

Louis Arki
Nunavut Securities Office

Ann Hall
Northwest Territories
Securities Office

Daniela Machuca
Financial and Consumer Affairs
Authority of Saskatchewan