Do you want better information about your investment costs and performance? Canadian securities regulators want to hear from you.
Last year, we told you about a proposal by the Canadian Securities Administrators (CSA) that would require dealers and advisers to report more information about the fees you pay and how your investments perform. Now, an amended proposal with new requirements is out for public comment.
About the proposal:
In 2011, the Canadian Securities Administrators (CSA) issued a proposal which would have registered advisers and dealers provide their clients with more information that tells them what their investments cost and how they’ve performed over time.
This would tell you about transaction fees at key times, like when your adviser recommends a purchase. You would also get an annual report that shows the dollar amount charges for your dealer’s or adviser’s products and services, as well as how your investments have performed. Check out a sample of what the annual charges and compensation report and investment performance report might look like.
Now, the amended proposal still has all of that, and also includes:
- Disclosure of commissions paid on fixed income investments, to provide more clarity on embedded fees
- Expanding the scope of account statements so that investors get more complete information
- Ensuring consistency in the way that the market value of investments is reported to investors
- Disclosing costs and risks that are unique to scholarship plan investments.
What this means to investors:
Your account statement tells you what your investments are worth today, but it may not tell you how they have done over time. Also, the costs of investing eat into your return. Knowing more about your investment costs and performance helps you assess your progress toward your financial goals and helps you decide if you’re getting value from the professional advice you receive.
Between now and September 14, 2012, let the regulators know if you support this proposal. If you can, share examples of cases where the current process could be improved. If you think the current process works just fine, let them know that, too. Write your comment in Microsoft Word and send it by e-mail to:
Me Anne-Marie Beaudoin