The Canadian Securities Administrators (the “CSA”) have published for a 90-day comment period proposed amendments to National Instrument 81-101 that are intended to implement Stage 2 of the point of sale disclosure framework originally published in October 2008 by the Joint Forum of Financial Market Regulators. 

Stage 1, which came into force January 1, 2011, obligated mutual funds to produce and file a “Fund Facts” document, make it available on the fund’s or its fund manager’s website and provide it free of charge to investors on request. The Fund Facts document is a plain language document, no more than two pages (double-sided) in length, which highlights information that the CSA have determined to be critical to a potential investor’s understanding of the fund, including past performance, risks and the cost of investing. Stage 2 will require delivery of the Fund Facts to investors within two days of purchase of a mutual fund security.

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