Mutual Fund Risk Classification Methodology - CSA provides update


Today the Canadian Securities Administrators (CSA) provided a status report on their efforts to determine a classification methodology for the purpose of calculating a mutual fund's volatility risk to be included in the Fund Facts document.

The Staff Notice published on January 29, 2015 provides a summary of the key themes arising from the Request for Comment launched by the CSA in December 2013 involving the proposed mutual fund volatility risk classification methodology for use in Fund Facts. CSA Staff also confirmed that standard deviation continues to be its preferred risk indicator for the proposed methodology and that it will continue engaging with stakeholders who provided comments on the project.

In 2015, CSA Staff expects to publish for comment proposed rule amendments aimed at implementing a standardized risk classification methodology for use by mutual funds in their Fund Facts.

Find out more here.