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Bulletin #0680-M

For further information, please contact:

Ian Strulovitch
Director, Communications & Public Affairs and Senior Legal Counsel
Membership Information
For Distribution to Relevant Parties within your Firm

Investor Notice - Changes to Fund Facts Delivery

MFDA and IFIC staff have jointly prepared the attached investor notice for advising clients of upcoming changes to the delivery of the Fund Facts. The investor notice has been created as part of the MFDA’s commitment to assist Members in communicating and explaining upcoming regulatory changes to clients.

The MFDA encourages Members and fund managers to include the investor notice in their next client communication. The document can also be provided to clients in electronic PDF format and made available on Member websites. The investor notice is formatted in a size appropriate for inclusion in standard sized envelopes.

The investor notice explains that after May 30, 2016 Fund Facts must be delivered to clients prior to the acceptance of instructions to purchase a fund, and notes the importance of reviewing Fund Facts prior to investing. Examples of how Fund Facts may be delivered to clients are provided. Clients who wish to get specific information on how Fund Facts will be delivered are directed to contact their dealer. In addition, the investor notice directs clients interested in learning more about Fund Facts to www.aboutfundfacts.com, which links to the Canadian Securities Administrators’ interactive sample of Fund Facts.

The investor notice is being provided as a resource for the voluntary use of Members. There are no mandated printing specifications; however the investor notice appears best when printed in colour, double-sided and on either semi-glossy paper or cardstock.

The investor notice is available in the following three formats in both English and French:

PDF format with crop-marks and bleeds suitable for printing

[English]

[French]

PDF format without crop-marks and bleeds suitable for display on websites and for electronic delivery

[English]

[French]

DOC format for Members that wish to incorporate all or parts of the investor notice into their own documents and communications

[English]

[French]

All versions of the investor notice will be made available on the MFDA website under “Forms” on the Policy and Regulation section.

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Did you know?

Important changes are coming on May 30, 2016.

Beginning May 30, 2016, your dealer is required to provide you with a document called “Fund Facts” before you purchase a mutual fund. Your mutual fund purchase cannot be completed until your dealer delivers Fund Facts to you.

Until May 30, dealers must provide Fund Facts to you no later than two days aft er your purchase.

Why is this changing?

The change to pre-sale delivery will ensure you can review important information about a mutual fund before you buy it.

How will Fund Facts be provided to you?

Fund Facts could be delivered to you in-person, through email, or through other means. The method used will depend on how your dealer interacts with you. You can contact your dealer for more information on how Fund Facts will be delivered to you.

What do you have to do?

There is nothing that you have to do. But be aware that your purchase cannot be completed until your dealer has delivered Fund Facts to you.

Can you purchase a mutual fund without receiving Fund Facts?

Generally, your dealer is required to deliver Fund Facts to you prior to your purchase.

What is Fund Facts?

Fund Facts is an important document with key facts about the mutual fund you are purchasing. Every mutual fund has its own Fund Facts, with information about the fund’s holdings, its performance, and the risks and costs of buying and owning the fund. You should always review Fund Facts when you purchase a mutual fund so that you are familiar with the fund’s key features.

You can learn more about Fund Facts from the Canadian Securities Administrators at www.aboutfundfacts.com. You can get a copy of Fund Facts for a particular fund from the mutual fund company’s website.