The Investment Funds Institute of Canada repeated today its commitment to working cooperatively with the Ontario Securities Commission in the review of fund trading practices.

“We are pleased that the results of the OSC survey thus far have not uncovered systemic abuses along the lines of those underlying the recent problems experienced in the U.S.; the Canadian mutual fund industry is committed to maintaining the confidence of Canadian investors,” said Tom Hockin, president and CEO of IFIC, in a news release.

The OSC has announced a second questionnaire seeking more detailed information is being sent to a number of fund companies. The OSC announcement, issued earlier today, notes that receipt of this questionnaire by a mutual fund manager does not mean that improper trading practices, such as late trading or market timing, have been uncovered in their funds.

IFIC has communicated recently the significant differences in how the fund industry operates between Canada and the U.S., which make the practice of late trading much more difficult here.

As for market timing, IFIC says this topic is more complex than late trading, as it is not illegal and there are legitimate circumstances when investors may decide to pull their money out of a fund shortly after investing in it. It says that flexibility is needed on market-timing issues, “to ensure that rules don’t punish the many for the deleterious behaviour of the few.”

IFIC says that it believes that the interest of individual investors should always come first and remains committed to maintaining and, where possible, enhancing the quality and security of mutual fund practices.