IFIC releases final fund risk classification guidelines

By Staff | June 23, 2017 | Last updated on June 23, 2017
1 min read

The Investment Funds Institute of Canada has released its 15th, and final, annual Voluntary Guidelines for Fund Managers Regarding Fund Volatility Risk Classification.

Prior to regulators zoning in on fund risk classification, these guidelines aimed to help classify, measure and compare the volatility risks of mutual funds, says Paul Bourque, IFIC president and CEO. On top of that, he adds, they’ve provided standardized terminology, categories and volatility risk descriptions of funds, and have been used for the vast majority of funds over the last 15 years.

Going forward, and beginning September 1, 2017, the Canadian Securities Administrators will assume responsibility for risk classification. Firms will be required to follow the new CSA risk classification methodology, which builds on the standard deviation approach found in the IFIC guidelines. Already, this has led to changes in fund risk ratings at several firms.


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Advisor.ca staff


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