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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 ( / Directives d’application facultative concernant la classification du risque de volatilité à l’intention des gestionnaires d’organismes de placement collectif (

“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 client’s needs and risk profile.”

Regulatory disclosure rules require fund managers to publish each individual fund’s 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.

About IFIC

The Investment Funds Institute of Canada is the voice of Canada’s 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 Canada’s savers to Canada’s economy, our industry contributes significantly to Canadian economic growth and job creation. The organization is proud to have served Canada’s investment funds industry and its investors for more than 50 years.

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For more information:
Sara Clodman, Senior Manager, Public Affairs, 416-309-2317

For more information contact:
Sara Clodman
Senior Manager, Public Affairs
The Investment Funds Institute of Canada (IFIC)
Phone: 416-309-2317

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The Investment Funds Institute of Canada (IFIC)


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