An advisor has an obligation to make appropriate disclosure at point-of-sale. A copy of the most current Information Folder must be delivered to the client before he or she signs the application for Segregated Funds. The Information Folder will contain a Key Facts document, which provides consumers with a very simple summary description of basic features in the contract so they may have general understanding of what they are purchasing.
Funds Facts for each segregated fund available under the contract must also be delivered with the Information Folder. The Fund Facts should allow investors to easily compare funds. Regulatory framework prescribes a standardized format and content for Fund Facts.
By providing the Information Folder and the Fund Facts to consumers, they will have important information they need to make an informed decision. It is your responsibility to discuss the contents of the Information Folder and the Fund Facts with the prospective client. The client must sign acknowledging receipt of these documents.
These requirements are intended to implement principles established by the Joint Forum of Financial Market Regulators to harmonize disclosure practices for mutual funds and segregated funds.
You will find additional sales practices that you must adhere to, through the links below. It is your responsibility to ensure that you comply with all the regulatory requirements, sales practices and Administrative Guidelines.
