Planned changes to performance reporting requirements for fund dealers are being suspended so that regulators can harmonize the requirements.
The Mutual Fund Dealers Association of Canada announced that its board has decided to suspend the implementation of a performance reporting rule that was slated to take effect next June, pending harmonization with performance reporting standards that are being developed by the Canadian Securities Administrators.
Back in October, the MFDA indicated that it was considering the suspension over concerns that firms would have to go through two costly sets of changes to their systems and statements if new MFDA requirements were adopted, and then new CSA requirements are introduced. As a result, it is suspending implementation “pending harmonization with performance reporting standards under [CSA rules] that are ultimately adopted.”
Separately, the MFDA issued a bulletin outlining the rule changes approved at its annual meeting earlier this week, including amendments to conform MFDA rules with CSA account statement requirements, which means adopting a quarterly delivery requirement for accounts held in both client and nominee name. The amendments are now awaiting approval of the securities commissions.