CSA publishes guidance on the use of discretion under the CSA investment risk classification methodology

Announcements and Updates ETF facts Fund facts Issue-oriented reviews Risk classification

The Canadian Securities Administrators today published CSA Staff Notice 81-338 Guidance on the Use of Discretion under the CSA Investment Risk Classification Methodology (the Staff Notice). 

The Staff Notice provides guidance on the appropriate use of discretion under the CSA investment risk classification methodology for conventional mutual funds, alternative mutual funds, and exchange-traded mutual funds (collectively referred to as funds), which is set out in Appendix F of National Instrument 81-102 Investment Funds (the CSA Methodology). 

Investment fund managers (IFMs) are required to use the CSA Methodology to determine the investment risk level that funds use and disclose in their Fund Facts documents or ETF Facts documents. 

In addition to guidance, the Staff Notice also provides an overview of the findings of the continuous disclosure reviews conducted by CSA staff of 45 IFMs to determine their use of discretion under the CSA Methodology. 

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