Canadian Securities Administrators (CSA) Releases Status Report on the Implementation of Point of Sale Disclosure for Mutual Funds
The Canadian Securities Administrators (CSA) today released its “Status Report on the Implementation of Point of Sale Disclosure for Mutual Funds” and in it outlined its staged approach to POS implementation. Point of Sale regulation has long been the CSA‟s key initiative for retail investor protection, in which investors would receive important information about a mutual fund at a time that is relevant to their investment decision. The central disclosure document, the Fund Facts, is intended to more clearly describe the nature of the mutual fund investment to investors and the CSA’s objective is to have financial advisors provide the disclosure information to their clients at or prior to the mutual fund purchase, and not after the fact as is currently the case (today, the prospectus is sent along with the trade confirmation two days after the trade, but investors do not read the document as it is written in legal jargon and it comes after the decision has been made).