MFDA and IFIC Help Inform Investors about Upcoming Changes when Purchasing Mutual Funds
February 25, 2016 – Toronto, ON – The Mutual Fund Dealers Association of Canada (MFDA) and the Investment Funds Institute of Canada (IFIC) today published an investor notice about the requirement (as of May 30, 2016) for dealers to deliver a Fund Facts document to clients before the purchase of a mutual fund. Under the current rule, dealers must provide Fund Facts to their clients no later than two days after their purchase.
“We are committed to working collaboratively with our Members towards our shared goal of improving investor knowledge and understanding,” said MFDA President and CEO Mark Gordon. “We have published this investor notice to assist our Members in meaningfully communicating and explaining upcoming regulatory changes to clients.”
The MFDA and IFIC are providing the investor notice directly to their respective members – the MFDA to dealers and IFIC to dealers and fund managers. Each organization is encouraging its members to include the investor notice in clients’ quarterly statements and other mailings, or to provide the notice to clients electronically and by other means.
“The industry shares our regulators’ goal to build investor knowledge and confidence. We are pleased to collaborate with the MFDA to raise investors’ awareness and improve their understanding of the products they are purchasing,” stated Joanne De Laurentiis, IFIC’s President and CEO. “Reviewing Fund Facts before a purchase will enable investors to have more meaningful conversations with their advisors and make decisions that are suited to their needs and circumstances.”
Each mutual fund has its own Fund Facts, with information about the potential benefits, risks and costs of buying and owning the fund. In addition to reviewing Fund Facts before a purchase, the investor notice encourages investors to visit www.aboutfundfacts.com, which links to the Canadian Securities Administrators’ interactive sample of Fund Facts, where investors can learn about each section of the document and find out how to identify key information such as a fund’s principal holdings, costs and risk rating.
“In discussions with our Members it was felt that Canadian investors would benefit from an explanation as to what the change to pre-sale delivery of Fund Facts means to them. This investor notice is a direct response to that,” noted Mr. Gordon.
The MFDA and IFIC will also raise investor awareness through their websites and social media.
The MFDA is the self-regulatory organization for Canadian mutual fund dealers, regulating the operations, standards of practice and business conduct of its Members and their approximately 83,000 Approved Persons with a mandate to protect investors and the public interest. For more information about the MFDA’s complaint and enforcement processes, as well as links to ‘Check an Advisor’ and other Investor Tools, visit the For Investors page on the MFDA website.
The Investment Funds Institute of Canada is the voice of Canada’s investment funds industry. IFIC brings together 150 organizations, including fund managers, distributors and industry service organizations, to foster a strong, stable investment sector where investors can realize their financial goals. By connecting Canada’s savers to Canada’s economy, our industry contributes significantly to Canadian economic growth and job creation. The organization is proud to have served Canada’s mutual funds industry and its investors for more than 50 years.
For more information:
Director, Public Affairs, MFDA
416-943-7425 | firstname.lastname@example.org
Senior Manager, Public Affairs, IFIC
416-309-2317 | email@example.com