CSA 90/2 - Rates of Return on Money Market Mutual Funds [CSA Notice - Rescinded]
| Published Date: | 1990-10-23 |
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The Canadian Securities Administrators are concerned that investors may be confused by the effect of these advertisements, notwithstanding the fact that each of the methods used to calculate rates of return may not in and of itself be objectionable. Pending completion and publication of the amendments to National Policy No. 39, all sales communications (as defined in National Policy No. 39) which disclose rates of return for money market mutual funds should conform with the following guidelines:
1. the current yield must be disclosed, calculated on a basis consistent with industry practice; and
2. if an effective yield also is disclosed, the basis upon which it is calculated must be disclosed and no greater prominence may be given to the effective yield than is given to the current yield.
It is intended that those affected by this notice will govern their affairs in accordance with it immediately. However, we recognize that certain arrangements may already have been made (for example, advertisements which have already been placed in publications) which do not comply with the notice. Accordingly, the effective date of this notice is November 12, 1990.