Canadian securities regulators are once again proposing to require fund dealers to deliver the new mutual fund disclosure documents known as Fund Facts before an investor choses to buy.

The Canadian Securities Administrators (CSA) Wednesday published proposed proposed amendments to National Instrument 81-101 Mutual Fund Prospectus Disclosure (NI 81-101), which would require point-of-sale delivery of Fund Facts.

This was the original intention of the regulatory reform effort that resulted in the creation of the simplified, plain language disclosure document, Fund Facts, but the regulators backed away from pre-sale delivery requirements in the face of industry opposition.

Instead, regulators have gone about finalizing the document and introducing its use in place of the traditional prospectus. Last year, they finalized rule changes requiring firms to deliver Fund Facts within two days of a purchase, and that takes effect in June of this year. Now, they are proposing to move to pre-sale delivery.

“Pre-sale delivery of the Fund Facts will provide investors with the opportunity to make more informed investment decisions by giving investors key information about a mutual fund, in a language they can easily understand, at a time that is most relevant to their investment decision,” the CSA says in its notice.

To respond to industry complaints that the original delivery requirements were too complex and would be too costly, the CSA is seeking to require pre-sale delivery for all sales. This includes purchases made through discount brokers, sales made without advice, regardless of asset class, including money market funds.

It was previously contemplated that pre-sale delivery wouldn’t be required for certain types of trades. Now, the CSA is aiming to make it simple by requiring delivery for all trades. There is a provision for a limited exception to that blanket requirement, but it only applies where the client demands an immediate trade without disclosure, and this exception can only be claimed on a trade-by-trade basis.

The proposals are out for a 60-day comment period.

The CSA also indicates that in the fall it will also be proposing a rule requiring exchange-traded funds to deliver a summary disclosure document, similar to the Fund Facts, within two days of a purchase. Regulators are also currently reviewing the risk disclosure component of Fund Facts.

“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 (ASC).

The CSA says it continues to “be committed to consulting with investors, representatives from the mutual fund industry, dealers, sales representatives and service providers on implementation issues related to pre-sale delivery of Fund Facts”; and that it will continue to work with self-regulatory organizations (SROs) on issues arising from the transition to pre-sale delivery of Fund Facts. It is currently proposing a one year transition period for pre-sale delivery requirements.