Distribution of disclosure documents for ETFs begins in December
The Canadian Securities Administrators (CSA) launched a campaign Monday that aims to get investors reading the new ETF Facts disclosure documents, which dealers will be required to provide to ETF buyers, starting Dec. 10.
The new documents are modelled on the Fund Facts documents that were developed for mutual funds to replace the traditional prospectus-based approach to disclosure. As with Fund Facts, ETF Facts is designed to provide investors with clear information on essential product features, including ETF performance, fees and costs, risks and portfolio holdings.
Unlike Fund Facts, which is required to be delivered to investors at the point of sale, dealers have two days after a sale to deliver ETF Facts.
“Reviewing the ETF Facts helps investors have informed conversations with their registered investment advisors about their ETF investments, for example how an ETF would fit within their portfolio or how certain features of an ETF, such as its fees and expenses, compare to other ETFs,” says Louis Morisset, CSA chairman and president and CEO of the Autorité des marchés financiers.