Last month, the Canadian Securities Administrators (CSA) republished proposals relating to the Fund Facts document mandated for public mutual funds. The CSA is continuing to propose a specific risk classification methodology for fund managers, which will determine the investment risk level of mutual funds (as well as ETFs in the proposed ETF Facts document). Currently, managers are permitted to use their own methodology to determine the risk classification for their funds, although in practice many managers utilize the classifications set out by the Investment Funds Institute of Canada (IFIC). The proposals would require that managers utilize standard deviation as the risk indicator, which is also currently used by IFIC. While the first set of proposals released two years ago would have changed the number of risk categories to six, the most recent proposals retain the current five category scale. The standard deviation ranges used to identify the risk category will be consistent with those used by IFIC. For those funds lacking the 10year performance history, the manager can choose a reference index in accordance with the stated principles. New requirements have been added to deal with the calculation where the mutual fund has undergone a reorganization or transfer of assets, or where there has been a change of fundamental investment objectives. While the original proposals would have required a manager to reassess the risk level every month, in response to comments, the CSA has now proposed that the level only be determined each time a Fund Facts (or ETF Facts) document is filed, and at least annually. The CSA is accepting comments on the proposal until March 9, 2016.