The Ontario
Securities Commission yesterday released a report that provides an overview of the
key initiatives undertaken by the regulator during 2012 that impact
investment fund issuers. Such projects concern: (i)
modernizing investment fund product regulation, (ii)
point of sale, (iii)
scholarship plans and (iv)
mutual fund fees.
Emerging issues and trends are also considered, including prepaid forward structures in prospectus
offerings, investment funds with exposure to physical commodities
and the increase in linked note offerings.
The report also considered OSC Staff's findings
and concerns resulting from a targeted review of the continuous
disclosure filings of Ontario-based investment funds.
Identified issues included concerns with advertising and marketing
materials (observations and guidance on this subject are
expected this Spring), as well as with respect to risk ratings
in fund facts (which in some cases resulted in mutual fund managers
changing
