Canada proposes new transparency rules for advisers

Wed Jun 22, 2011 12:00pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article
[-] Text [+]

TORONTO (Reuters) - Canadian regulators on Wednesday published proposals that would require investment dealers and financial advisers to be more transparent with clients on the cost and performance of their investments.

The proposed framework means registered dealers and advisers would have to provide each clients with annual reports on charges for products and services provided, as well as offering details on how investments performed that year and over longer periods.

The Canadian Securities Administrators (CSA), an umbrella grouping of regulators from across the country, said it surveyed about 2,000 investors and held sessions to gauge investors' understanding and expectations about fees, performance measurements and reporting.

"These proposals reflect the CSA's extensive dialogue with market participants and will require that investors, particularly retail investors, be provided with a better understanding of the costs and performance of their investments," CSA chairman Bill Rice said in a statement.

The CSA said the initiative is part of its client relationship project, which increases disclosure requirements for dealers and advisers about their services.

The CSA is made up of securities regulators from Canada's 10 provinces and three territories. It coordinates and harmonizes regulation for capital markets.

The Notice and Request for Comment on the proposals is available on CSA members' websites. The comment period is open until September 23. See here

(Reporting by John McCrank; editing by Rob Wilson)