With the Registered Retirement Savings Plan (RRSP) deadline approaching, it is a good idea to familiarize yourself with the Canadian Securities Administrators’ (CSA) Fund Facts Interactive Tool. This tool allows you to better understand the mutual funds that you are considering purchasing as an RRSP contribution.

The CSA has published a sample Fund Facts document on their web page that features an interactive tour that helps break down the information presented in a Fund Facts document.

Investors can use this tool to learn how to identify a mutual fund’s principal investments, past performance, risk rating, and cost to investors. Familiarizing yourself with the language contained in a Fund Facts document will help arm you with questions to ask, and aid in clarifying the investment characteristics that are important to your portfolio.

Currently, investors are required to receive a Fund Facts document within two days of buying a mutual fund.

In December 2014, the CSA published final amendments that will require all dealers that sell mutual funds to deliver a Fund Facts document before investors make a decision to buy a conventional mutual fund. This change brings Canada in line with global regulatory standards. The requirement for pre-sale delivery of the Fund Facts takes effect on May 30, 2016.

If you have any questions or concerns regarding any mutual funds that you have purchased or are considering purchasing, do not hesitate to contact BCSC’s Inquiries Group at 604-899-6854 or 1-800-373-6393 or through e-mail at [email protected].

Suggested Reading

Arrests a reminder to investigate before you invest

Affinity Fraud: BBB’s Top Financial Scam for 2013

Investment Caution List: 6 New Additions

More Resources

A balancing act – investor protection vs capital raising

Robert Roach, a senior researcher at the Canada West Foundation, recently published an article entitled “Why embracing failure is good for the economy.” He suggested, “Canadians need a higher tolerance for failure…instead of sticking with what we know, we need to support bold new ventures.” He makes the point that Canada’s economic prosperity relies on […]

Lessons Learned from the Manna Ponzi Scheme

A BC Securities Commission panel issued a decision regarding the BC based ‘Manna scheme’ in August 2009. The ‘Manna scheme’ was a Ponzi fraud that cost investors losses totaling more than US$10-million. In this scheme, 800+ investors deposited around $16 million and only received $3-5.6 million back. There is little hope of recovering the rest. Educating yourself on […]