Investment fund managers in Quebec need to improve the accuracy of their Fund Facts filings, according to the results of a recent review from the Autorité des marchés financiers (AMF).
The AMF’s review focused on the disclosure of a fund’s portfolio composition, which found that fund managers “should pay closer attention” to the charts they provide in their filings.
The AMF’s review found that 36% of the funds used charts in their Fund Facts that “were not sufficiently consistent” with the actual funds; 17% presented incomplete information; 11% did not disclose the level of complexity of the strategy; and 6% used charts that were inconsistent with their prospectus.
The AMF’s review also found that firms didn’t have adequate controls for verifying the quality of the information presented in their Fund Facts filings.
The AMF also provides guidance in its notice detailing the results of the review that aims to help enhance firms’ compliance with the rules in this area. The AMF says it expects fund managers “to use the findings in this notice to improve the quality of disclosure provided to investors and the public.”
The regulator also notes that it intends to follow up on the results of this review and may require firms to make changes to their Fund Facts documents if it doesn’t see enough improvement.