The development of the proposed Fund Report involved behavioural insights research, which examined how individuals think, behave, and make decisions. The research included rigorous investor testing to compare the effectiveness of different versions of the Fund Report against a sample MRFP.
“These amendments reflect our commitment to ensuring that investors have access to disclosure that includes appropriate information that is more likely to be read and understood and is easier to apply when making investment decisions,” said Stan Magidson, CSA chair and chair and CEO of the Alberta Securities Commission.
He added that streamlining disclosure requirements aims to reduce the regulatory burden on investment fund managers while improving the overall quality of information available to investors.
Two additional proposals include exemptions from certain conflict of interest reporting requirements in securities legislation if similar conditions are met and eliminating some class- or series-level disclosures from investment fund financial statements not required by International Financial Reporting Standards.
The CSA is also proposing to reference the term Fund Expense Ratio (FER), which combines the management expense ratio and trading expense ratio, in the Fund Facts and ETF Facts documents. Minor editorial revisions are also being proposed for the simplified prospectus form (SP Form).
