How long are Fund Facts good for?

A reader wrote to ask:

“With upcoming changes requiring Fund Facts to be presented to the client prior to a trade being completed, I was wondering how long the document is good for. If a Fund Facts document is presented today, is it good as long as the client holds that fund, or must a new one be presented every couple of years?”

We asked the Ontario Securities Commission for the answer.

“Fund Facts must be renewed on an annual basis and must be updated in the event of a material change that affects the content of the Fund Facts (e.g., a change in investment objectives, an increase in the management fee),” an OSC spokesperson told Advisor.ca by email.

“Effective May 30, 2016, generally dealers will be required to deliver the most recently filed Fund Facts to a purchaser before accepting an instruction for the purchase of a mutual fund. In Ontario, if there has been an update to the Fund Facts, the dealer will be required to deliver the newer version of the Fund Facts prior to processing the subsequent purchase order.”

Have a question? We’ll try to answer it for you. Email us!

Also read:

New Fund Facts delivery rule kicks in soon

Best execution proposal would level field, increase obligations

CSA proposes new risk-rating methodology for funds

Staff

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