CSA eyes disclosure on scholarship plans

Advisors who deal in scholarship plans take note: a second comment period has opened for proposed amendments to the rules governing disclosure. Be sure to have your voice heard.

The Canadian Securities Administrators (CSA) has published revised amendments to National Instrument 41-101 General Prospectus Requirements, which includes Proposed Prospectus Form 41-101F3 Information Required In A Scholarship Plan Prospectus.

If the amendment is adopted, it would introduce a tailored disclosure form for scholarship plans. The amended Prospectus Form focuses on the Plan Summary documentation, and is aimed at making scholarship plans easier for clients to understand.

“The Prospectus Form is designed to provide investors with a simpler and clearer understanding of the potential benefits, risks and costs of investing in scholarship plans,” said Bill Rice, chair of the CSA and chair and CEO of the Alberta Securities Commission. “By ensuring the form disclosure is effective, we aim to help investors make more informed investment decisions regarding saving for their children’s education.”

The Prospectus Form also addresses a number of issues in current scholarship plan disclosure identified through previous CSA compliance and prospectus reviews, as well as the 2008 Review of Registered Education Savings Plan Industry Practices.

To comment on the proposed amendments, please refer to the CSA Notice and Request for Comment for National Instrument 41-101 General Prospectus Requirements and Proposed Form 41-101F3 Information Required In A Scholarship Plan Prospectus.

The comment period is open until January 24, 2012.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.