On June 18, 2015, the CSA released their well-anticipated proposal that will require exchange-traded funds (ETFs) to produce and file a summary disclosure document, the ETF Facts.

The ETF Facts will look very similar to the Fund Facts document that is currently required to be prepared for retail mutual funds. However, the ETF Facts document will contain additional detail that reflects the unique nature of the products, including the trading and pricing information related to an ETF, such as market price, bid-ask spread, and the premium or discount to net asset value.

Dealers that receive orders for ETF securities will likewise be required to deliver the document instead of a prospectus within two days of purchase. Similar to the Fund Facts, the ETF Facts document must be made available on the website of the ETF or its manager.

The ETF Facts is intended to provide investors with important information about the fund in a comprehensible format that is easily comparable to other funds. It will also help ensure consistency between the disclosure requirements for mutual funds and ETFs. The proposal will replace the exemptive relief that has already been granted to a number of specific dealers that act as agents for the purchaser of an ETF security, which requires them to deliver a summary document within two days.

The CSA are seeking comments on a number of aspects of the proposal, including on the proposed two-phase transition periods, the content of the form as it relates to trading of ETFs and on rights for withdrawal. Comments will be accepted until September 16, 2015.