(November 15 – 12:20 ET) –
The Canadian Securities
Administrators has released a
Mutual Fund prospectus disclosure
system to enable investors to make
critical financial decisions
based on easily understood
information.

“Canadian investors will now be
able to make decisions regarding
their investments based on sound,
easily accessible financial
disclosure,” said Rebecca Cowdery
in a prepared statement released
today. Cowdery is manager,
Investment Funds at the Ontario
Securities Commission and project
leader for the CSA working group.

The rules allow for information
to be distributed in two documents:
the “Simplified Prospectus” and
the “Annual Information Form.” The
Simplified Prospectus must be
delivered to investors. One section
must provide introductory
information about the mutual
fund, its manager as well as
general information about Mutual
Funds. A second section provides
required information about a
specific Mutual Fund in a standard
format.

The “Annual Information Form”
must be given to those investors
who ask for it. Both documents
must be written in plain language
that can be understood by novice
investors, said Cowdery.

A second rule, designed to
expand the scope of investor
protection in regulating mutual
funds management was released
today.

“This rule represents years of
effort by the Canadian Securities
Administrators to re-examine
regulations governing the structure
and management of mutual funds,”
said Ms. Cowdery.

If approved by the necessary
government officials, both Rules
will become effective on February
1, 2000.

-IE Staff