News Releases
Canadian Securities Regulators to Measure Impact of Point of Sale Amendments and Phase 2 of the Client Relationship Model
Aug 22, 2016
Vancouver –The Canadian Securities Administrators (CSA) today announced a multi-year research project to measure the impacts of requirements introduced by Phase 2 of the Client Relationship Model (CRM2) and the Point of Sale (POS) amendments on investors and the industry.
On July 15, 2013, the CRM2 amendments to National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations became effective. These amendments were designed to ensure investors receive clear and complete disclosure of the performance of their investments and all fees associated with their accounts, including registrant compensation. The amendments came into effect in three phases: July 15, 2014, July 15, 2015, and July 15, 2016.
On June 19, 2009, POS amendments to National Instrument 81-101 Mutual Fund Prospectus Disclosure were proposed to help investors make more informed investment decisions by providing them with key, plain language information about a mutual fund prior to purchase. The majority of these amendments became effective March 11, 2015. The final amendments, which require mutual fund dealers to deliver an easy-to-understand Fund Facts document to investors before the purchase of a mutual fund, became effective May 30, 2016.
“CRM2 and POS were designed with investors’ needs in mind,” says Louis Morisset, Chair of the CSA and President and CEO of the Autorité des marchés financiers. “We want to ensure that the increased transparency about investment costs and performance and the provision of the Fund Facts documents are indeed helping investors make more informed investment decisions.”
The research will measure outcomes related to investor knowledge, attitude, and behaviour, registrant practices, and fund fees and product offerings. It will cover activity from 2016 through 2019 and is expected to be completed by 2021. The CSA believes that this duration will allow us to secure helpful longitudinal information over a multi-year period post implementation to assess the impacts of CRM2 and POS.
The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.
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For more information:
Alison Walker
British Columbia Securities Commission
604-899-6713
Nicole Tuncay
Senior Communications Advisor
403-297-4008
Jason Booth
The Manitoba Securities Commission
204-945-1660
Tanya Wiltshire
Nova Scotia Securities Commission
902-424-8586
Jeff Mason
Nunavut Securities Office
867-975-6591
Shannon McMillan
Financial and Consumer Affairs Authority of Saskatchewan
306-798-4160
Kristen Rose
Ontario Securities Commission
416-593-2336
media_inquiries@osc.gov.on.ca
Sylvain Théberge
Autorité des marchés financiers
sylvain.theberge@lautorite.qc.ca
Andrew Nicholson
Financial and Consumer Services Commission, New Brunswick
506-658-3021
Janice Callbeck
The Office of the Superintendent of Securities, P.E.I.
902-368-6288
Rhonda Horte
Office of the Yukon Superintendent of Securities
867-667-5466
Tom Hall
Office of the Superintendent of Securities,
Northwest Territories
867-767-9305