The Investment Funds Institute of Canada says it welcomes the release of the Canadian Securities Administrators’ concept proposal on Mutual Fund Governance on Friday, March 1, 2002.

IFIC notes that the opinions of its staff and members were actively solicited by the CSA working group in the preparation of the proposal.

In a media release, IFIC states that its members anticipate that the proposal will provide increased flexibility in the regulatory framework along with the mandate and ability for a mutual fund complex to establish its own independent governance agency.”

It goes on to say that the industry hopes the proposal will benefit investors and enhance the integrity of the industry.

IFIC president and CEO Tom Hockin, states “It is prudent and appropriate for the CSA to evaluate the governance options for the mutual fund industry at the present rather than in a time of crisis. Changes to the regulatory structure governing mutual funds were last made in 1969, a time at which the mutual fund industry was in its infancy, so the Institute and its members embrace the opportunity to contribute, especially as this industry is one in which millions of Canadian investors have placed their trust.”