1. Point of Sale Disclosure Reform? Getting compliant with the right technology

2. What is POS Disclosure Reform?

3. Background: February 13 2003 the CSA published Consultation Paper 81-403 which outlines a new point of sale disclosure framework. Mutual fund companies will be required to prepare a new disclosure document called “Fund Facts” The Goal is to provide investors with more meaningful information when they are making an investment decision. Key items highlighted: Potential Benefits of a fund Risks & Costs of investing in the fund

4. Stage Implementation of POS Disclosure Reform

5. Stage Implementation of POS Disclosure Stage 1 Fund Companies to prepare, post and file Fund Facts and make available on their websites Stage 2 Legislative amendments to allow the delivery of Fund Facts to satisfy the requirement to deliver a prospectus within two days of buying a mutual fund. Stage 3 The actual implementation of POS delivery for mutual funds at the POS

6. What Has Already Happened? January 2011: Stage 1 was implemented. August 12, 2011: CSA proceeds with Stage 2 of POS disclosure for mutual funds. The proposed amendments are expected to be adopted in each Canadian jurisdiction. Some jurisdiction will require legislative amendments to implement the proposal.

7. What Is The Next Step? Stage 3: The actual implementation of POS delivery for mutual funds at the point of sale. This will accompanied by the associated compliance processes by the various provincial regulators. The essence of Stage 3 is actual delivery and proof of delivery at the POS.

8. How Does It Impact Advisors?

9. All investment advisors that sell mutual funds will be required to: Have the ability to deliver Fund Facts to their clients at the time they make investment recommendations to them. This is called the point of sale (POS). Investment dealerships will ultimately be responsible for ensuring that all advisors have the tools necessary to be compliant.

10. Register For A Free Trial www.fundfactspos.ca

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