For Immediate Release
March 24, 2010

Canadian Securities Regulators Take Steps to Improve Scholarship Plan Disclosure for Investors 

Toronto – The Canadian Securities Administrators (CSA) today published for comment amendments to National Instrument 41-101 General Prospectus Requirements and Form 41-101F2 Information Required in an Investment Fund Prospectus that are aimed at providing investors with more meaningful and effective disclosure about scholarship plans. 

This publication is the first phase of the CSA’s approach to modernize the regulation of scholarship plans. The proposal includes Form 41-101F3 Information Required in a Scholarship Plan Prospectus, a new form that is tailored to the unique features of scholarship plans. 

Central to the proposal is a new Plan Summary document that highlights the potential benefits, risks and costs of investing in a scholarship plan. It is written in plain language, will generally be no more than three pages and will be delivered with the prospectus. 

“We know that investors often have trouble understanding the unique features and complexity of scholarship plans,” said Jean St-Gelais, Chair of the CSA and President & Chief Executive Officer of the Autorité des marchés financiers (Québec). “The new prospectus form will provide investors with the opportunity to make more informed investment decisions by giving them key information in language they can better understand.” 

The need for clearer and simpler prospectus disclosure for scholarship plans was also identified in Review of Registered Education Savings Plan Industry Practices, a 2008 report prepared for the department of Human Resources and Social Development Canada (HRSDC). 

Copies of the proposed rule amendments and additional background information are available on the websites of CSA members. The CSA is seeking input from all stakeholders on the proposals. The comment period is open until June 22, 2010. 

The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.

For more information: 

Theresa Ebden
Ontario Securities Commission
416-593-8307

Sylvain Théberge
Autorité des marchés financiers
514-940-2176

Mark Dickey
Alberta Securities Commission
403-297-4481

Ken Gracey
British Columbia Securities Commission
604-899-6577

Ainsley Cunningham
Manitoba Securities Commission
204-945-4733

Wendy Connors-Beckett
New Brunswick Securities Commission
506-643-7745

Natalie MacLellan
Nova Scotia Securities Commission
902-424-8586

Barbara Shourounis
Saskatchewan Financial Services Commission
306-787-5842

Janice Callbeck
PEI Securities Office
Office of the Attorney General
902-368-6288

Doug Connolly
Financial Services Regulation Div.
Newfoundland and Labrador
709-729-2594

Fred Pretorius
Yukon Securities Registry
867-667-5225

Louis Arki
Nunavut Securities Office
867-975-6587

Donn MacDougall
Northwest Territories
Securities Office
867-920-8984