We have recently submitted a comment to the Joint Forum of Financial Regulators on their proposal (National Instrument 81-406) for a point-of-purchase document for mutual and segregated funds. If you have trouble sleeping, we have posted a copy of our submission.
Steadyhand is all for more disclosure and transparency and the proposed Fund Facts document makes some progress in this direction. However, we don’t feel that the proposal should go ahead as currently laid out. In our view, it doesn’t accomplish one of the Joint Forum’s primary objectives – informing investors about how much they are paying in fees. On that front, we still think the best way to disclose fees is on the account statement, which investors regularly read with interest. Steadyhand discloses to its clients the amount of fees paid each quarter in dollars and cents. It wasn’t hard to do.
Happy reading.