Fees Disclosure in Short-Form Prospectuses
This article was originally published in the Investment Funds Practitioner in May 2013.
A prospectus must provide full, true and plain disclosure of all material facts relating to the securities being distributed. Filers who use short-form prospectuses to qualify their investment funds are reminded that staff consider the fees and expenses of the fund to be material facts that should be disclosed in the investment fund’s prospectus. In addition to the form requirements of Form 44-101F1 - Short Form Prospectus, filers are expected to include a "Fees and Expenses" section in their short-form prospectus of an investment fund which describes the (i) expenses of the offering, (ii) the subscription fee, (iii) management fees, (iv) operating expenses, (v) other fees and expenses of the fund, if any, and (vi) fees payable by securityholders of the investment fund, as applicable.