CSA requirements to improve disclosure now in effect

Canadian Securities Administrators (CSA) are delivering on their investor protection commitments with new disclosure requirements that will provide investors with clear and meaningful information about their investments.

Read: CSA releases details of third fiduciary panel

The amendments to National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103) are now in effect, with key elements being phased in over three years to allow industry sufficient time to meet the new requirements.

The amendments ensure all investors receive the same information about the cost and performance of their investments and that the same standard to disclose this information is applied to all firms registered to deal in securities or act as portfolio managers.

Read: 4 upcoming regulatory proposals “Research shows that investors across Canada lack vital information about the cost and performance of their investments,” says Bill Rice, chair of the CSA and chair and CEO of the Alberta Securities Commission. “These amendments demonstrate the CSA’s commitment to arm investors with sufficient account information to make informed decisions about their investments.”

Read: CSA releases 3-year business plan Over the next three years, investors can expect:

• starting July 15, 2014, pre-trade disclosure of charges and disclosure of compensation from debt securities transactions in trade confirmations;
• starting July 15, 2015, enhancements to client statements, which will provide position cost information and market value calculated in accordance with a prescribed methodology; and,
• starting July 15, 2016, an annual report on charges and other compensation and an annual investment performance report.

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The staff of Advisor.ca have been covering news for financial advisors since 1998.