The Investment Funds Institute of Canada (IFIC) said new investor disclosure rules from the Canadian Securities Administrators, the Mutual Funds Dealers Association and the Investment Industry Regulatory Organization of Canada (IIROC) coming into effect July 15 will make it easier for Canadians to understand their investments.
The new rules, which are refered to as CRM2 (Client Relationship Model 2), require clear descriptions of all benchmarks and disclosing fees before trades are made. Until now, a representative from the IFIC told Business in Vancouver, companies issued statements to investors, but the information was not presented in a standardized way.
“These new rules are putting us firmly ahead of the rest of the world in providing clear information to mutual funds investors,” said Joanne De Laurentiis, president and CEO of the IFIC.
“The industry is embracing these changes and collaborating to ensure their smooth implementation. Canada’s regulators and the industry should take pride in what we are working to accomplish.”
Securities dealers will now be required to report account performance annually, provide pre-trade and trade confirmation compensation disclosures and an accounting of all annual account fees and costs.
More details about CRM2 can be found here.
