OSC seeks investor input on account cost and performance reporting proposals

June 22, 2011 The Canadian Securities Administrators (CSA) today published proposals that would require registered dealers and advisers to provide their clients with personalized information about account-related charges and account performance.

“Investors have told us that they want this type of information,” says Susan Silma, Director, Compliance and Registrant Regulation. “We expect that clear and meaningful cost and performance information will help investors evaluate how well their account is doing and provide them with the opportunity to make more informed decisions about meeting their investment goals.”

Under the proposals, investors would receive additional reporting from their dealer or adviser:
  • a new annual summary of all account-related and product charges, and other compensation received by the registered firm, and
  • annual account performance reporting.
Information about charges and compensation would also be provided to investors at relevant times, for example, when they open their account and when a charge is incurred.

In developing the proposals, the CSA surveyed approximately 2,000 investors and held several document testing sessions to gain better insight into investors’ understanding and expectations relating to fees, performance measurement and reporting.

The OSC welcomes feedback from investors on the proposals. The proposals are open for public comment until September 23, 2011. For more information, see the Notice and Request for Comment.