Investment fees led the agenda at the Joint Forum of Financial Market Regulators’ annual meeting last week.
This year, the forum engaged externally on investment fees, a topic of high importance to both defined contribution pension plan members — particularly those invested in mutual funds — and policy holders of segregated funds.
It sought the views of industry associations and investor advocates on the reporting of performance and ongoing costs of owning investments, including embedded fees within mutual and segregated funds.
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The forum brings together members of the Canadian Association of Pension Supervisory Authorities, the Canadian Securities Administrators, the Canadian Council of Insurance Regulators and representatives from the Canadian Insurance Services Regulatory Organizations and the Mortgage Broker Regulators’ Council of Canada.
“Communication and disclosure of investment fees to pension plan members is an important priority for CAPSA, particularly in the context of defined contribution plans,” said Leah Fichter, chair and executive director of the CAPSA’s pensions division and deputy superintendent of pensions at the Financial and Consumer Affairs Authority of Saskatchewan, in a press release.
“It is one mechanism that can assist plan administrators meet their responsibilities to plan members. As well, it provides pension plan members with the information they need to make informed investment decisions.”
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Frank Chong, chair and vice-president of the CCIR and deputy superintendent of regulation at the B.C. Financial Services Authority, noted the organization is working with its regulatory partner on the investment side to ensure people have comparable information on costs, fees and performance of their segregated and mutual funds.