Canadian Wealth Management Firms To Deliver Fund Facts More Quickly
Following the rollout of
Now, the situation is becoming more in-depth with the
Similar standards were introduced on January 1, 2011, when mutual fund companies were instructed to prepare and file Fund Facts for every class of funds, then post them on their website. Now, the Canadian Securities Administrators will ask for a quicker turnaround as a part of the POS Project. Some wealth management firms are already taking the initiative to distribute Fund Facts via email and print letters within two days of purchasing funds.
Phase 2 and beyond
The idea behind Phase 2 of the POS Project is to give people more transparency into wealth management firms. However, the two-day deadline isn’t going to be as difficult on firms as one might think. Fund Facts documents are now meant to be short and concise.
“We estimate about
Looking ahead to Stage 3, the CSA would like to see Fund Facts provided at the immediate point of sale, rather than two days after the deal has closed. The changes that the CSA is implementing will force wealth management firms to be on top of their game.
It appears that the government as a whole is fixated on the idea of providing more transparency to investors, which could potentially grow trust between these individuals and financial advisors in the future. Although it requires more work on the end of asset management firms, it can yield worthwhile positive results for both sides. Wealth management firms can also make it easier to remain compliant with new CSA regulations by ensuring that their collateral pertaining to investments is always up-to-date.