Last week we talked about the new fee disclosure, including specifically disclosure for purchases of mutual funds that came into effect on July 15, 2014, under the Client Relationship Model 2.
New disclosure for purchasers of debt securities came into effect at the same time.
If you are buying or selling a debt security, such as a bond, your advisor must include, in the trade confirmation your receive either
- the total amount of compensation your advisor’s firm received, whether commission, mark-up or mark-down, or other service charge, or
- the amount of any commission and a notification that other compensation may have been applied to the trade.
If you are buying a debt security, the trade confirmation must also state the security’s annual yield.
Additional important disclosure requirements will come into effect on July 15, 2015 and 2016. For example, starting 2016, you will be receiving an annual report on all fees and compensation your advisor’s firm received in connection with your investments. You will also be receiving an annual report on investment performance. So stay tuned!
BCSC staff ambassadors tour the province, helping people to protect themselves from fraud and unsuitable investments. Our goal is to enable BC investors to develop critical thinking skills so they can become more informed of steps they should take to protect themselves when investing. Where we are this month Prince George InvestRight seminar Oct […]
The Canadian Securities Administrators (CSA) today issued an investor watch to make investors aware of the significant risks involved in foreign currency exchange (Forex/FX) investments. Investors who trade Forex are also warned against dealing with unregistered firms offering Forex trading. The investor watch was created after CSA staff identified an increase in unregistered foreign exchange […]