The Canadian Securities Administrators are considering possible changes to the presentation of risk in the new mutual fund disclosure documents known as Fund Facts.
According to Rhonda Goldberg, director of the investment funds branch at the Ontario Securities Commission, the CSA is currently considering the feedback it received on the proposed second phase of its point of sale initiative for mutual funds, which was published for comment in August 2011. The proposals would allow fund companies to rely on the delivery of Fund Facts documents to satisfy the current prospectus delivery requirements.
Among the comments the CSA has received on the initiative, investor advocates have criticized the presentation of risk within the documents, and Goldberg indicates that, among other things, the CSA is reviewing that element of the proposals.
“Any proposed changes to the Fund Facts, including changes to the risk disclosure, will be published for comment,” she notes, adding that the regulators are also committed to testing the revised document with investors prior to implementing any revisions to it. The CSA expects to republish the proposed amendments in the spring or summer.