Securities regulators have approved a new performance reporting rule for mutual fund dealers, requiring delivery of quarterly account statements.
The securities commissions of Alberta, British Columbia, Ontario, Saskatchewan, Manitoba, Nova Scotia and New Brunswick have approved, or not objected to amendments to the rules of the Mutual Fund Dealers Association of Canada, which require dealers to deliver account statements to clients at least once every three months for both client name and nominee name accounts.
The amendments ensure that fund dealers are subject to consistent requirements concerning the frequency of account statement delivery under both MFDA rules and the securities commissions’ registration rules. They also harmonize the delivery requirements for accounts held in client and nominee name.
Additionally, the amendments delete the rule that requires dealers to send a quarterly statement to clients for automatic payment plan transactions held in nominee name. This requirement is no longer necessary as quarterly statements will be required for all accounts, it notes.