The Mutual Fund Dealers Association of Canada (MFDA) and the Investment Funds Institute of Canada (IFIC) have jointly published an insert that mutual fund dealers can use explain to investors the move to pre-sale disclosure.

The MFDA and IFIC on Thursday published an investor notice that explains the forthcoming change in regulatory requirements, which will require dealers to provide clients with Fund Facts disclosure documents before they can purchase a fund.

Currently, firms have to provide Fund Facts within two days of the trade. The move to pre-trade delivery is set for May 30.

The organizations are encouraging their members to include these notices in clients’ account statements, other mailings, or by electronic delivery, in order to help investors understand the change.

“We have published this investor notice to assist our members in meaningfully communicating and explaining upcoming regulatory changes to clients,” says Mark Gordon, president and CEO of the MFDA, in statement.

“In discussion with our members it was felt that Canadian investors would benefit from an explanation as to what the change to pre-sale delivery of Fund Facts means to them,” he says. “This investor notice is a direct response to that.”

“The industry shares our regulators’ goal to build investor knowledge and confidence,” adds Joanne De Laurentiis, IFIC’s president and CEO. “We are pleased to collaborate with the MFDA to raise investors’ awareness and improve their understanding of the products they are purchasing.”

“Reviewing Fund Facts before a purchase will enable investors to have more meaningful conversations with their advisors and make decisions that are suited to their needs and circumstances,” she adds.

The MFDA and IFIC will also raise investor awareness of the change through their websites and social media, the organizations say.