Opening Comments from the Chair

Susan Han,
Associate Counsel,
Miller Thomson, LLP

Regulatory Update: Get the most up to date information on point of sale disclosure for mutual funds and how it will affect you

Moving to a point of sale disclosure regime for mutual funds will bring profound changes to all aspects mutual funds sales and distribution. All industry participants face significant sales, compliance and operational challenges. Will you be ready? Join us for an update and discussion on where the proposal is now, and where it is heading.

• Hear the latest updates on the responses to the proposal published on Jun 19, 2009 and
  next steps
• Learn how you can respond now to meet future obligations

Be aware of the latest regulatory changes affecting you and your role.

Rhonda Goldberg, Manager, Investment Funds Branch, Ontario Securities Commission	Noreen Bent, Manager and Senior Legal Counsel, Legal Services, Corporate Finance, British Columbia Securities Commission
Bob Bouchard, Manitoba Securities Commission	Eric Lapierre, Autorite des Marches Financiers

Regulators’ Interactive Q&A Session

This engaging session gives you the opportunity to have your questions and concerns answered by Canada’s top regulators.

Take away a greater understanding of how the latest regulations will affect your firm.

Meeting your Compliance Obligations for Advisors: How can you prove delivery?

Demonstrating conclusively that delivery took place within the requirements of the rule is a major concern for compliance officers. Firms and advisors face substantial regulatory and civil liability risk if they are not able to produce evidence of proper delivery in accordance with the rules. Here we consider how firms and financial advisors can protect themselves from allegations of non-delivery.

• What is the exposure of the financial advisor under the new regime?
• What is the exposure of the firm?
• How should delivery be proved? Written acknowledgement?
• What role would compliance play in ensuring delivery was pre-trade?
• What are the special exceptions and circumstances compliance needs to be aware of?

Discuss the issue of proving delivery, and learn how compliance can illustrate this.

Larry Boyce, Partner, Sutton Boyce Gilkes

Ellen Bessner, Partner, Cassels Brock and Blackwell

Creating an action plan for meeting the product arbitrage challenge

A major concern for mutual fund manufacturers and distributors alike is that the new rules may confer a competitive advantage on products sold under a simpler, less burdensome sales and compliance regime. Will the popularity of mutual funds be eclipsed by ETFs and SMAs? How can the mutual fund industry respond? Hear this informative and lively debate with some of our most astute observers and commentators.

• Will the point of sale regime encourage advisors to steer investors away from mutual
  funds?
• What challenges are on the horizon?
• How do fund managers compete with ETFs?

Gain a better understanding of how you can respond to the challenges of product arbitrage.

Eric Adelson, Senior Vice President, Legal, Invesco Trimark

Dan Hallett, Director, Asset Management, HighView Asset Management Inc.

Better, Clearer Fee Disclosure: Will the new rules accomplish this?

A key objective in the new rules, and of the Client Relationship Model, is to provide clients with better disclosure on fees. There is heated debate surrounding the fee disclosure requirement. Investor advocates argue in favour of more disclosure, but advisors and fund mangers are less enthusiastic.

• Should fees be included in the “bring it to the attention of” requirement?
• Is the advisor in an inherent conflict on the matter of fees? How can this conflict be best
  addressed? Do the new rules go far enough, or should advisors be under a fiduciary
  standard?

Engage in a lively debate over whether or how to disclose fee structures in the fund facts.

Jon Cockerline, Director, Policy-Dealer Issues, IFIC

Ilana Singer, Associate Director, FAIR Canada

Point of Sale and the International Context: How is it playing out in other jurisdictions?

In the United States, a similar program already exists in which funds must supply a summary prospectus for easy understanding. Called a Fund Summary, it bears many similarities to the Fund Facts. Get up to date information on:

• How the Fund Summary functions in the United States
• What the reaction from advisors, dealers, and investors has been
• What the future of the Fund Summary may look like

Understand the global context of the Fund Facts and learn what it means for your firm.

Kelley McKinnon,
Partner,
Gowlings, LLP

Panel
The Changing Role of Operations: How producing the Fund Facts will impact your firm

With the Fund Facts come new responsibilities. In some cases, there will be cost savings. In others, there will be increased costs. Increased costs are largely going to impact advisors and small firms, with manufacturers experiencing some savings.

• Determine what the role of production is for advisors and manufacturers
• Should costs be split between advisors and manufacturers?
• What would the impact be on the client?

Improve your understanding of how costs can be structured.

Anthony Boright, President, VAULT Solutions Inc.	Robert Boic, Broadridge Investor Communications Solutions, Canada
Brooke Biscoe Vice President of Business Development Fundata of Canada	More to come...

POS Fund Facts and its impact on your continuous disclosure obligations

Over the past few decades, disclosure rules in Canada have been created, reviewed and altered many times for the Mutual Fund industry.  With current Point of Sale legislation under review, the industry is once again considering how technology and operational impacts will result in new shared obligations.

• Review how Fund Facts will affect disclosure in your firm
• Examine the role technology plays in meeting your regulatory obligations
• Determine what best practices will emerge from the changing regulatory landscape

Analyze how the Fund Facts will impact your continuous disclosure requirements

Patricia Rosch,
President,
Broadridge Investor Communications Solutions, Canada

Opening Comments from the Chair

Susan Han,
Associate Counsel,
Miller Thomson, LLP

Compliance Session
Delivery of the Fund Facts: How to structure your delivery method to meet compliance obligations

Delivery of the Fund Facts as a pre-trade requirement is the most challenging and controversial aspect of the proposed rules, with much of the debate centred on the mechanics of delivery. There are also other aspects to the delivery requirements.

• What constitutes “bring it to the attention of”?
• How can compliance meet this requirement?
• What are the exceptions to this requirement?
• How should delivery be structured? Is electronic delivery sufficient?
• If paper, how many Fund Facts can be delivered at one time? Where to draw the line?
• How can advisors working in remote locations ensure timely delivery takes place?
• Use of the waiver of delivery of the Fund Facts

Be aware of your obligations for your “bring it to the attention of” requirements. Debate the issue of delivery, and how best to meet compliance criteria.

Michael Holder, Associate General Counsel, Jovian Capital

Susan Han, Associate Counsel, Miller Thomson, LLP

Legal and Compliance Session
Cancellation and Rescission Rights: The final word?

If a client does not receive a Fund Facts pre-trade, an opportunity exists for the client to cancel or rescind the trade. Because this can become a huge cost issue for advisors and firms, minimizing this type of scenario is essential.

• What is the “free option” problem, and how do you prevent it?
• What must have occurred for cancellation and rescission to occur?
• How does “proofing the seed” factor into the criteria?

Understand how to meet your obligations when a client attempts to cancel or rescind their fund.

Julia Dublin,
Partner,
Aylesworth, LLP

Legal and Compliance Session
The risk classification problem; how your firm can respond

Every investor has different risk limits, and knowing this is an important part of recommending funds to clients. With various methods of gauging risk, and its seemingly subjective measurement, how the Fund Facts will list risk is open to debate.

• How many risk measurements should be listed, and on what basis?
• Should the entire portfolio have the same risk classification?
• Would the CSA or SROs make the final decisions?

Understand the intricacies of how the risk classification will affect the Fund Facts.

Ken Kivenko,
Chair, Advisory Committee,
Small Investor Protection Association (SIPA)

More to come . . .