On April 19, the Mutual Fund Dealers Association (MFDA) published a discussion paper (2018 Paper) on expanded cost reporting for investment funds. This initiative follows up on its December 2015 consultation on the same topic, as well as its 2017 CRM2 review of integrated members’ charges and compensation reports. The 2018 Paper asks the investment fund industry to consider whether investors should receive additional reporting on the total costs of investment fund ownership, including items such as management fees, fund operation costs, redemption fees and short-term trading fees, none of which are paid to dealer members. Other costs that could be disclosed include transaction costs such as custodial fees and portfolio management fees.

Although the 2018 Paper is primarily of concern to MFDA members, other investment fund industry participants should pay attention. This is because 2018 Paper also asks if regulators should expand cost 6 reporting for other investment products. The MFDA has indicated that will share the results of its consultation with other regulators. Comments are due on July 20, 2018.