CSA Identify Deficiencies In Firms' Relationship Disclosure Information Practices

The Canadian Securities Administrators today released the findings of a review of the relationship disclosure practices of registered portfolio managers and exempt market dealers. Specifically, the review of a representative sample of 124 registered firms sought to assess compliance with section 14.2 of NI 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations.

Ultimately, the CSA identified a number of deficiencies in the reviewed firms' relationship disclosure information. The staff notice specifically highlighted that registered firms were deficient by, among other things: (i) providing unclear disclosure regarding the type or nature of the account they managed for particular clients; (ii) not specifically providing information to clients regarding the types of securities in which they invest to fulfill an investment mandate; (iii) providing only a generic list of risks without describing the risk implications on clients' investment