Fund Facts Documentation Now Effective

By Andrew Rickard | June 23 2014 07:15AM

Since June 13th, mutual fund companies have been required to give investors a copy the Fund Facts document within two days of buying a conventional mutual fund. This is the second phase of the Canadian Securities Administrators’ (CSA) Point of Sale Disclosure for Mutual Funds Project. In the upcoming third phase of the project, the Fund Facts will be sent to investors before they purchase securities. The prospectus for a mutual fund will continue to be available to investors upon request.

In a news release announcing the change the Quebec financial services regulator, the Autorité des marchés financiers (AMF), noted that this document is written in clear, plain language and is meant to highlight core information about the fund, in particular its principal investments, its past performance, and the cost to investors.

"Investors owe it to themselves to read the Fund Facts if they want to make informed decisions," said Louis Morisset, AMF President and CEO. "The Fund Facts will provide investors with key details about a fund in language that is clear and easy to understand. This information will guide investors in their discussions with their representatives to ensure that the fund's securities are aligned with their investor profiles," he added.