ONTARIO SECURITIES COMMISSION (OSC): PRIORITIZE A PAUSE …

The OSC’s Statement of Priorities (SoP), was published on November 22, 2022 for a 30-day comment period. Among the many activities the OSC intends to pursue is the publication of the final amendments to National Instrument 31-103 in April 2023 to implement the Total Cost Reporting (TCR) disclosures.

The rush to final amendments is regrettable. Much is missing.

Where is:

• the evidence that TCR will change investment decisions for the better?
• the assurance that it won’t lead to unsuitable investor choices like selecting less expensive funds without proper consideration of risk-return?
• the further assurance that it will not limit investor options? For example, TCR is excessively onerous for pooled funds, foreign funds, ETFs, and newer investment funds which may become unavailable at their dealer.
• the cost-benefit analysis with proper quantitative analysis recommended by the International Organization of Securities Commissions (IOSCO) and the Organization for Economic Co-operation and Development (OECD)?

There remain many operational hurdles to TCR as proposed. Can we find other ways to work within the existing regulatory framework to achieve a better outcome for investors?