Investment fund survey
On April 26, 2021, the Ontario Securities Commission (OSC) launched a survey (the Investment Fund Survey) to collect data in order to compile detailed insights into the capital markets that we oversee and regulate. The deadline to complete and submit the survey is July 30, 2021, which provides firms with more than three months to complete the survey. The survey requests information for the period ending December 31, 2020.
The survey focuses on several areas, including leverage, liquidity and asset class exposures of investment funds. In particular, this survey seeks data points including, but not limited to: fund size, type of holdings (by geography and asset class), leverage, ownership and liquidity profiles.
Why are we conducting this survey?
The OSC has a mandate to protect investors, foster fair and efficient markets, and contribute to the stability of the financial system in Ontario. Given the importance of investment funds for Ontario’s investors and capital markets, the resilience of the investment fund industry is critical, particularly at times of financial and economic crises. As such, it is important for OSC staff to maintain close regulatory oversight of the industry. Access to data on investment funds will allow staff to monitor the health of the industry in a proactive manner.
The OSC also collaborates on its monitoring activities with other regulatory bodies with a shared interest in promoting financial stability. Domestically, the OSC is part of the Heads of Regulatory Agencies which provides a forum for federal and provincial bodies to discuss financial sector issues. Globally, the OSC is a member jurisdiction of the International Organization of Securities Commissions (IOSCO) and coordinates information sharing with organizations such as the Financial Stability Board (FSB).
The information provided in the Investment Fund Survey will allow for the development of a risk identification framework to deliver on the OSC’s mandate. In addition, the data gathered will allow for comprehensive and meaningful information sharing and interactions with regulatory partners, both domestically and internationally.
What needs to be completed?
The Investment Fund Manager Form
All investment funds managers registered in Ontario are requested to complete the Investment Fund Manager Form, which has been circulated to investment fund managers directly via email. The Investment Fund Manager Form collects high-level profile information about the manager. If you are a registered investment fund manager and your firm did not receive the Investment Fund Manager Form, please email [email protected].
The deadline for completing the Investment Fund Manager Form is May 31, 2021.
The Investment Fund Spreadsheet
Investment fund managers are also asked to complete the Investment Fund Spreadsheet for investment funds with net asset values of at least $10 million as of December 31, 2020 in addition to the Investment Fund Manager Form. Once completed, the Investment Fund Spreadsheet should be submitted via email to [email protected].
The deadline for submitting the Investment Fund Spreadsheet is July 30, 2021.
Which funds need to be reported?
This survey covers all investment funds, including prospectus-exempt and prospectus-qualified investment funds, that have net asset values of at least $10 million as of December 31, 2020. Information for these funds should be reported in the Investment Fund Spreadsheet.
Investment funds can include a range of products, including mutual funds, exchange-traded funds, closed-end funds, hedge funds, pooled funds, flow-through LPs, etc.
This survey does not include labour sponsored investment funds or scholarship plans.
The OSC collected information related to prospectus-exempt funds between 2014 and 2020 via a biennial survey. As noted above, this year’s survey has been broadened to include prospectus-qualified funds. In addition, some of the key changes to the Investment Fund Spreadsheet include the following:
- changes to certain geographic categories to align with IOSCO guidelines
- changes to certain asset classifications to align with IOSCO guidelines
- identifications of crypto-focused funds and crypto assets held by investment funds
- identification of L1, L2 and L3 asset breakdown under IFRS 13
- more detailed breakdown of collateral posted and received
- information requested on designated brokers, authorized participants, and portfolio holdings disclosure policy for ETFs
Historical Prospectus-Exempt Fund Spreadsheets used to collect data on prospectus-exempt funds can be found below:
The OSC is very cognizant of, and acknowledges, the need to explore, strategize and execute on streamlined and efficient data collection and usage. Our goal is to minimize duplicate requests by taking advantage of data sets already made available to us through various channels to the greatest extent possible, gain maximum insights from available datasets, build internal efficiencies and synergies as they relate to data requests, reporting and insight generation, and streamline data collection through various modern capabilities. We will continue to build capabilities around this within the OSC, which we believe will result in reduced burden and a better experience around this process for our participants going forward.
The introduction of the Digital Solutions Branch is one step forward towards the digital transformation of the OSC. By working closely with the Digital Solutions branch, we intend to modernize our business and data collection platforms and processes across the OSC to align with the strategic plans noted above.
In regard to leverage within investments funds, we note that IOSCO will request this information from all participating jurisdictions on an annual basis with a reporting deadline around April every year. In order to respond to IOSCO requests in future years, we will:
- collect data on investment funds on an annual basis; and
- make this data request early in the year with the survey rollout in January of every year requesting a response by March.
To contribute to financial stability, we will consider making aggregated data publicly available on a no-names basis. Aggregated data may also be shared with other regulatory partners, including the Bank of Canada, IOSCO and FSB.
We may also share the information provided in this survey on a confidential basis with other Canadian Securities Administrators (CSA) jurisdictions.
If you have any questions, concerns or suggested improvements, please contact: [email protected].
Each investment fund manager must provide its National Registration Database (NRD) number, both in the Investment Fund Manager Form and for each fund in the Investment Fund Spreadsheet.
The legal entity identifier (LEI) must be reported in the Investment Fund Spreadsheet for each fund with an LEI. The Global Legal Identity Identifier Foundation website may assist with searching for the appropriate LEI.
Please report all dollar amounts in Canadian dollars (CAD). For funds with assets or other amounts denominated in foreign currencies, please use the Bank of Canada Daily Exchange Rates Lookup tool to convert the value to CAD.
Exchange-rate conversions of positions should be made as of December 31, 2020.
For expenses, gross sales, income, distributions and redemptions, please report this data with the appropriate daily exchange-rate conversions, if feasible, or with a December 31, 2020 exchange-rate conversion, otherwise.