As the new kid on the block at the Investment Funds Institute of Canada, I’m learning there is a lot more to learn, especially about the mutual fund industry. But when it comes to leading a thriving trade organization, one that has multiple stakeholders and myriad products that appeal to a growing number of investors, now there I have some experience.

For background, I am the new president and CEO of IFIC, taking over from Tom Hockin, who led this mutual fund trade association for more than 11 years with insight and dedication. I have worked in the financial services industry for more than 20 years — primarily leading competitors to find common ground and advance legitimate interests.

I believe that the skills I have developed in both credit union and banking organizations will serve me well in the mutual fund industry. That experience has taught me how to work with a diverse group of members, regulators and investors/customers for the betterment of investors and the industry itself.

These are interesting times for the mutual fund industry. On a pure numbers basis, the past year has been good in terms of net new sales, which stood at $23.3 billion, up about 60% from 2004. This bodes well for a healthy RRSP season. As you know, many of these sales have been in the balanced and dividend income categories. According to Morningstar Canada, the top performers were in natural resources, emerging markets and precious metals.

A strong agenda

Coming up, there is a lot on IFIC’s plate from a securities regulator’s point of view, including:

> fund governance;

> point-of-sale disclosure (in which the current hefty prospectus will be slimmed down and an information sheet distributed to clients when they purchase a product);

> referrals and outside business activities;

> the addition of new registration categories, including one for fund managers; and

> a new, mandatory compliance program.

Then there are issues on the legislative side. For example, IFIC will be addressing concerns that were raised about Bill C-55, which contains amendments to federal bankruptcy and insolvency legislation. The amendments will make RRSP and RRIF assets exempt from seizure by creditors in the event of personal bankruptcy. This is good for your clients who are professionals, who run small businesses or who otherwise do not have company pension plans.

The amendments received royal assent prior to the election call, but they are not expected to come into effect until the middle of this year.

This will give IFIC time to persuade the government to make RRSP and RRIF assets exempt from all creditor seizures — such as in the event of an insolvency, not just bankruptcy. We will also urge legislators not to implement the proposed cap on the RRSP/RRIF amount that is exempt from creditors, and will ask them to abandon the proposal that RRSPs/RRIFs have to be locked in to receive the exemption.

I am excited about the opportunity to lead an association for an industry that is helping ordinary Canadians build their wealth. And the sheer level of participation is a strong indication that Canadians agree. IE



Joanne De Laurentiis is president and CEO of the Investment Funds Institute of Canada in Toronto.