Members of the Joint Forum of Financial Market Regulators, at the joint forum’s recent annual meeting, have decided to move “in lock-step” with investment industry regulators on requiring the disclosure of costs fees and performance in segregated funds.
The joint forum’s members include members of the Canadian Securities Administrators (CSA), the Canadian Council of Insurance Regulators (CCIR), the Canadian Association of Pension Supervisory Authorities (CAPSA) and representatives from the Canadian Insurance Services Regulatory Organizations (CISRO).
“Joint forum members sought the views of industry associations and investor advocates on the reporting of performance and ongoing costs of owning investments including embedded fees within mutual and segregated funds,” the group said in a statement. “The total cost reporting initiative aims to propose a regulatory framework that is as harmonized as possible in light of differences between the securities and insurance products and their distribution channels.”
Frank Chong, CCIR chair, vice president and deputy superintendent of regulation with the BC Financial Services Authority (BCFSA) says “we are moving in lockstep with our regulatory partner on the investment side to ensure consumers have comparable information on costs, fees and performance of their segregated and mutual funds.” He adds that “the outcome of this project will position consumers to make informed financial decisions.”
