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The Voice of Canada’s Investment Funds Industry

Letters to the Editor

To The Globe and Mail on regulatory reform – mutual fund fee

March 17, 2015

Re: “Regulators must take their best shot at mutual fund fees” (March 17, 2015)

Tim Kildaze’s conclusion that there should be wider availability of low trailer funds on discount brokerage platforms has merit; however, we must point out several misrepresentations in his description of the path of regulatory reform.

First, the regulator’s 2012 document was a preliminary discussion paper that sought input and information from all stakeholders – not “an extensive study” as Kildaze characterizes it.

Second, wide-ranging regulatory amendments introduced over the last several years have delivered enormous lasting changes within the industry that range from greatly increased regulatory oversight to massive improvements to the information investors receive.

Third, many firms within the industry have cooperated fully with the recent data request. The researcher’s request only went out to the industry in November (not the summer as Kildaze implies), unfortunately with insufficient legal assurances regarding confidentiality of the data. Industry was given just 45 business days to provide millions of data points. It took until early February for regulators and researchers to address the shortcomings in the agreement.

The investment funds industry appreciates the regulator’s mandate to protect investors and makes every effort to cooperate in its deliberations.

Joanne De Laurentiis,
President & CEO,
The Investment Funds Institute of Canada

Submitted: March 17, 2015
Published: March 21, 2015 (abridged version)