SIMA Advocates for Fair Fee Structures in Investment Spaces
The Securities and Investment Management Association (SIMA) has recently engaged in a consultation process regarding the recalibration of regulatory fees facilitated by the Autorité des marchés financiers (AMF).
Support for Fee Reductions
SIMA has expressed its endorsement of the AMF's decision to lower fees applicable to mutual fund dealers and investment dealers. This change stems from the delegation of certain powers to the Canadian Investment Regulatory Organization (CIRO). Through these adjustments, SIMA hopes to inspire other Canadian Securities Administrators (CSA) members to implement similar measures. This collaborative approach could foster a fairer market environment and eliminate the possibility of fee duplicity.
Concerns Over Fee Increases
While SIMA appreciates the reductions, it has voiced concerns regarding proposed increases in fees associated with filing prospectuses and Fund/ETF Facts related to investment funds. The association argues that the absence of supporting detailed data renders these increases unjustifiable. As a proactive measure, SIMA calls for enhanced transparency and further discussions with the AMF to dissect these proposals more thoroughly.
Continued Collaboration and Transparency
Marie Brault, Chair of the Board of Governors for SIMA, highlighted the importance of aligning fees with delegated regulatory activities. She emphasizes that such measures are vital for promoting fairness and competitiveness within the investment industry. However, she urges the AMF to provide comprehensive data explaining the reasoning behind fee hikes for investment funds. By advocating for a more transparent fee structure, SIMA aspires to collaborate effectively with the AMF and other CSA members, ensuring a streamlined fee framework that benefits all market participants.
Introduction of New Non-Refundable Fees
SIMA also supports the introduction of a non-refundable pre-filing fee, set at $2,000, which would apply to consultations involving draft documents not culminating in formal filings. Nevertheless, SIMA recommends that clear exemptions be included for informal inquiries, particularly those that do not require documentation.
Challenges in Member Consultation
In its submission to the AMF, SIMA addressed the difficulties it faced when undertaking comprehensive member consultations. This situation arises largely due to the AMF's scheduling of simultaneous consultations during peak summer vacation months. To avoid such challenges in the future, SIMA suggests improved practices for the publication of regulatory amendments.
About SIMA
The Securities and Investment Management Association empowers the Canadian investment industry. It serves as the foremost voice for the securities and investment management sector, which manages around $4 trillion in assets on behalf of over 20 million investors. SIMA’s membership encompasses investment fund managers, mutual fund dealers, participants in capital markets, and providers of professional services. This diverse membership is dedicated to establishing a resilient and innovative investment sector that fuels long-term economic growth, creating opportunities for Canadians across the nation.
Frequently Asked Questions
What is SIMA's position on the AMF's fee recalibration?
SIMA supports the fee reductions for mutual fund dealers and investment dealers but opposes proposed increases in fees for prospectus filings.
Why is SIMA concerned about fee increases?
They believe that increases lack sufficient supporting data and call for more transparency and engagement from the AMF.
What does SIMA propose regarding non-refundable fees?
SIMA endorses a $2,000 non-refundable pre-filing fee but recommends exemptions for informal consultations.
What challenges did SIMA face during consultations?
They faced difficulties conducting thorough member consultations due to the timing overlapping with peak vacation months.
How does SIMA contribute to the investment industry?
SIMA empowers the investment sector, engaging various members to create a resilient market that benefits all Canadians.
