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The Voice of Canada’s Investment Funds Industry

Performance Reporting & Cost Disclosure

The mutual funds industry supports recent regulatory initiatives that provide investors with important information before and after they purchase their investments.

Members of the industry are working together and collaborating with regulators to implement major changes to the information that investors receive through Fund Facts, before clients purchase a mutual fund, and also through CRM2.

Once CRM2 is fully implemented (which, in most cases, will be in the first quarter of 2017), investors will know, in dollar amounts, all of the costs associated with their accounts. On the performance side, they’ll see how well their investments have performed in dollar terms and their percentage rate of return over several time periods.

When it is fully up and running, CRM2 is expected to strengthen investors’ understanding of their investments and their confidence to make sound decisions.

IFIC is encouraging its members, and the industry generally, to adopt consistent investor-friendly language in their all their materials. IFIC has created an inventory of plain language materials that can be shared broadly to help advisors inform their clients.

We continue to work closely with our members and regulators on all aspects of implementation.



Documents

2016
Implementing the Final Phase of CRM2

Presentation by Michael Stanley (President & CEO, Quadrus Investment Services Ltd. and Chair of IFIC’s CRM2 Communications Task Force) to The Strategy Institute


Pre-Sale Delivery of Fund Facts – Plain Language Description for Investors

This document is a Word version of the plain language content developed by the MFDA and IFIC for a statement insert (see below) to inform investors about the requirement (as of May 30, 2016) for dealers to deliver Fund Facts to clients before the purchase of a mutual fund. Firms are welcome to use this content in their communications with investors.


Statement Insert Notifying Investors about Pre-Sale Delivery of Fund Facts

IFIC encourages dealers to include the insert with their clients’ quarterly statements or to provide it to investors in some other way. Managers can participate by sending it with trade confirmations and posting it online. A version with crop-marks is available for dealers, managers or their suppliers to download and print. For more information, refer to the document Pre-Sale Delivery of Fund Facts.


Statement Insert Notifying Investors about Pre-Sale Delivery of Fund Facts – For External Printing

IFIC encourages dealers to include the insert with their clients’ quarterly statements or to provide it to investors in some other way. Managers can participate by sending it with trade confirmations and posting it online. IFIC would be interested in knowing which firms decide to pursue this initiative and the quantities that are distributed. For more information, refer to the document Pre-Sale Delivery of Fund Facts.


Pre-Sale Delivery of Fund Facts

IFIC and the Mutual Funds Dealers Association (MFDA) have collaborated to produce a statement insert to help the mutual funds industry inform investors about the upcoming requirement for dealers to deliver Fund Facts to clients before they purchase a mutual fund.


Globe and Mail Investment Funds Supplement (February 11, 2016)

CRM2 Spotlight: Considerations for Dealers

This bulletin outlines direction provided by the Canadian Securities Administrators (CSA) and the Mutual Fund Dealers Association (MFDA ) to assist dealers in meeting various requirements of CRM2. It focuses on three areas: the application of CRM2 to investments that are not securities, such as segregated fund contracts, annuities and GICs; transfer payments from affiliates; and referral fees.


2015
Dealer Checklist: CRM2 – 2015 Requirements (updated November 2015)

Outlines new information that dealers must include on clients’ account statements as of December 31, 2015, and provides insights and practical information to help dealers meet these requirement.


Advisor Insights – CRM2 Myths and Facts

This fact sheet focuses on frequent factual errors observed in media coverage about the timing and content of CRM2 reporting requirements. It has been prepared to provide advisors with accurate information about key aspects of CRM2. The same information has been provided to journalists in an effort to improve the accuracy of media coverage.


Backgrounder: CRM2 Myths and Facts