Media Release - IFIC Releases Final Annual Fund Risk Classification Guidelines
June 23, 2017
Toronto, ON - June 23, 2017 - The Investment Funds Institute of Canada (IFIC) today released its 15th and final annual Voluntary Guidelines for Fund Managers Regarding Fund Volatility Risk Classification (https://www.ific.ca/wp-content/uploads/2017/06/Voluntary-Guidelines-for-Fund-Managers-Regarding-Fund-Volatility-Risk-Classification-June-2017.pdf/17322/) / Directives dapplication facultative concernant la classification du risque de volatilité à lintention des gestionnaires dorganismes de placement collectif (https://www.ific.ca/wp-content/uploads/2017/06/Voluntary-Guidelines-for-Fund-Managers-Regarding-Fund-Volatility-Risk-Classification-June-2017-French.pdf/17322/).
Long before this topic became a regulatory priority, the industry took the initiative to create voluntary guidelines for classifying, measuring and comparing the volatility risks of mutual funds, said Paul C. Bourque, IFIC president and CEO. For 15 years, the guidelines have provided a standardized framework for investors and advisors to evaluate whether the volatility risk of a fund is suitable based on the clients needs and risk profile.
Regulatory disclosure rules require fund managers to publish each individual funds risk; however, the regulations did not define risk. The IFIC guidelines were developed by IFIC members in 2003 and updated annually to provide a consistent measurement for fund volatility risk. They have provided standardized terminology, categories and volatility risk descriptions of funds and have been used for the vast majority of funds over these years.
Beginning September 1, 2017, the Canadian Securities Administrators (CSA) will assume responsibility for risk classification and firms will be required to follow the new CSA risk classification methodology. The CSA methodology builds on the standard deviation approach found in the IFIC guidelines and retains a five-band risk scale.
It is a testament to the industry that the CSA guidelines substantially follow the approach used by the industry over the past 15 years, Bourque noted.
The Investment Funds Institute of Canada is the voice of Canadas investment funds industry. IFIC brings together 150 organizations, including fund managers, distributors and industry service organizations, to foster a strong, stable investment sector where investors can realize their financial goals. By connecting Canadas savers to Canadas economy, our industry contributes significantly to Canadian economic growth and job creation. The organization is proud to have served Canadas investment funds industry and its investors for more than 50 years.
For more information:
Sara Clodman, Senior Manager, Public Affairs, firstname.lastname@example.org 416-309-2317For more information contact
Senior Manager, Public Affairs
The Investment Funds Institute of Canada (IFIC)
Website: www.ific.caClick here to view our Sources Listing: