Toronto - The Canadian Securities Administrators (CSA) announced today that two research contracts have been awarded that will further the review of Canada's mutual fund fee structure. This research marks an important step in advancing a policy decision on mutual fund fees and follows a request for proposals by the CSA for independent third-party research to evaluate whether regulatory action is needed regarding these fees.

The CSA has selected Douglas J. Cumming, Professor of Finance and Entrepreneurship and the Ontario Research Chair at the Schulich School of Business, York University to collect and review data on whether sales and trailing commissions influence fund sales. As part of his research, Professor Cumming will be requesting data from a representative sample of investment fund managers in the coming months. Receiving this data is important to ensuring that any policy initiatives in this area are well-founded and supported by quantitative information.

In addition to this research, the Brondesbury Group will conduct a literature review to assess whether the use of fee-based vs. commission-based compensation changes the nature of advice and investment outcomes over the long term.

The research reports by Professor Cumming and the Brondesbury Group are expected to be completed and made publicly available in the first quarter of 2015.

In December 2012, the CSA published a Discussion Paper that identified potential investor protection issues arising from Canada's current mutual fund fee structure. Members of the CSA then conducted extensive stakeholder consultations, including a public roundtable in June 2013 and discussion forums in the summer and fall of 2013.

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

Andrew Nicholson
Financial and Consumer Services Commission
New Brunswick

Tanya Wiltshire
Nova Scotia Securities Commission

Janice Callbeck
Office of the Superintendent 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

Gary MacDougall
Northwest Territories Securities Office

Denny Huyghebaert
Financial and Consumer Affairs
Authority of Saskatchewan