IFIC backs CSA’s proposed electronic filing changes

By Staff | July 29, 2019 | Last updated on July 29, 2019
2 min read
Shelf with file folders in a archives
© Harry Huber / 123RF Stock Photo

The Investment Funds Institute of Canada (IFIC) supports the Canadian Securities Administrators’ (CSA) plans to consolidate its electronic filing systems into a single system — although IFIC is also urging the regulator to keep costs for investment fund managers in mind.

In May, the CSA announced plans to discontinue its standalone filing systems, including the System for Electronic Data Analysis and Reporting (SEDAR) and the National Registration Database (NRD), in favour of a single system. The CSA also announced changes to its fee structure estimated to reduce total system fees by 7%, saving a combined $1.7 million.

On Monday, IFIC said in a submission that it supports the CSA’s efforts to create a single filing system, noting potential benefits to regulators, market participants and investors. It urged the CSA to collaborate with industry in developing the system, which it said should provide market participants ongoing access to their data to reduce the regulatory burden.

IFIC also noted that while costs of using the new system are estimated to be 7% lower for market participants, fees for investment fund managers are “estimated to increase by approximately 8%, due mainly to the new $40 fee proposed for Ontario and British Columbia exempt distribution filings in the renewed system.”

“It is difficult for the industry to lower investment product costs for investors if regulatory costs continue to increase,” IFIC wrote in its submission. “Such increased costs must ultimately be passed on to investors. We urge the CSA to be mindful of the impact of fee increases on the costs of products and services to investors.”

Read IFIC’s full submission.

Advisor.ca staff


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