COMPLIANCE FOR MUTUAL FUNDS

Conference held in Toronto on April 19, 20 & 21, 2006
Chairs: Paul C. Bourque, Investment Dealers Association of Canada; Barry J. Myers, PricewaterhouseCoopers LLP; Demetra T. Valente, State Street Global Markets; Garth J. Foster, Fasken Martineau DuMoulin LLP

CD-ROM: Ov. 7 hours of video presentations

To purchase, please contact Federated Press.

STRATEGIC COMPLIANCE AND FUND GOVERNANCE

• OECD White Paper March 2005
• NI 81-107: proposals for fund governance regime
• NI 81-108: compliance rule for investment funds
• Current standards of governance
• U.S. governance trends
• Compliance in Canada

"To effectively marry governance with compliance in the mutual fund industry, a CIS scheme is essential to align the interests of the governance regime with those of the investors. These parties must be capable of rendering independent judgements that observe standards of integrity and that observe all laws and rules."

Video: 45 minutes • Overheads

The establishment of an independent review committee for mutual funds
Mark A. Convery, Ogilvy Renault LLP; W. Sian Burgess, IGM Financial Inc.; and Dan Donnelly, CIBC

• Proposed National Instrument 81-107 overview
• Composition of an independent review committee (IRC)
• Implications of the whistle-blowing authority of an IRC
• IRC responsibilities and functions
• Liability issues of IRC members

"There appears to be a consensus that the future role of the IRC is best relegated to issues of conflict of interest. Beyond this there is a fear that there could be a blurring of lines between the IRC and a Board of directors."

Video: 57 minutes

The changing role of compliance
Paul C. Bourque, Investment Dealers Association of Canada

• Challenges to compliance
• The role of compliance committee
• Setting expectations: the compliance function
• Value-added compliance
• The culture of compliance

"The increasing complexity of the regulatory environment is demanding the development of the mandate and role of the compliance department. The compliance side of the business is now becoming an integral part of the member's business activities, and as such has an impact on the firm's culture of compliance and reputation."

Video: 42 minutes • Overheads • Paper 18 pgs.

DEALING WITH A NEW ERA OF REGULATORY ISSUES

National Instrument 81-106: The reality of its applications
Barry J. Myers and Krystine Wang, PricewaterhouseCoopers LLP

• National Instrument 81-106: frequently asked questions
• Financial statements items
• Quarterly portfolio disclosure
• Consequential amendments to GAAP

"The introduction of National Instrument 81-106 puts an emphasis on continuous communication and disclosure, and as such has increased the complexity of compliance."

Video: 42 minutes • Overheads

Current issues in tax compliance
Judith E. Harris, Osler, Hoskin & Harcourt LLP

• FIE rules
• Withholding tax on TCP gains distributions
• Non-resident investors
• New T3 requirement: returns of capital
• Repeal of foreign property rules
• Possible future changes

"Recent changes in tax compliance involve foreign investment entities, non-resident investors and taxable Canadian property, and return of capital. Going forward, there may be a new capital gains tax deferral proposed by the Department of Finance."

Video: 30 minutes • Overheads

Developments in soft dollars and best execution
Susan Han, AIM Trimark Investments; John Black, Osler, Hoskin & Harcourt LLP and Katrina Pierce, CIBC World Markets

• Canada, U.S. and U.K. regulatory developments
• Disclosure practices under NI 81-106
• Developments on the buy side
• Developments on the sell side

"The questions of soft dollars and best execution are at best in a state of transition. The industry requires further time and study to bring about improved disclosure of soft dollar arrangements, which would be subject to a public comment process."

Video: 53 minutes • Overheads

Compliance issues surrounding KYC forms in mutual funds
Demetra T. Valente, State Street Global Markets

• KYC compliance risk management issues
• Providing supervision evidence of suitability
• Compliance on updating KYC forms
• Compliance pitfalls for the dealer

"Increased attention and focus on money laundering since 1989 has led to an emphasis on board and management oversight of regulatory requirements. This, in practice, means a growth in reporting requirements and annual monitoring procedures."

Video: 32 minutes

Due diligence for sub-advisers
Edna A. Chu, CMA Holdings group of companies

• Key components to successful due diligence
• Due diligence review process
• Fund manager's compliance program
• Annual stewardship report
• Investment management agreement

"Ensuring proper due diligence for sub-advisers demands a detailed review process, adherence to a compliance manual, and a comprehensive reporting system. The purpose of this system is to decrease potential compliance risks."

Video: 18 minutes • Overheads

ONGOING CHALLENGES

Regulatory registration reforms and compliance issues
Garth J. Foster, Fasken Martineau Dumoulin LLP and John W. Murray, Investment Funds Institute of Canada

• Registration reform project
• Principal Regulator System MI 11-101
• Referral arrangements: proper use and obligations
• Outside business activities
• Using the National Registration System
• Handling regulatory audits
• Other compliance initiatives

"The coming regulatory registration reforms will be an attempt to streamline and harmonize the mutual fund registration process. As well as protecting investors better, the benefits of the reform are seen as establishing national standards and the reduction of registration categories."

Video: 73 minutes • Overheads

CICA Handbook, Sec. 3855
Patricia Peruzza and Tim Deacon, PriceWaterhouseCoopers LLP

• IFRS and impact on investment funds
• Classification of financial assets/investment (IAS39)
• Fair value (IAS 39)
• Functional currency (IAS 21)
• CICA Section 3855: financial instruments
• CICA Section 3855: implications for investment funds

"Section 3855 is expected to have a significant impact on mutual fund reporting systems. The merging of international and Canadian reporting standards will strongly affect accounting and disclosure policies, bringing about new valuation methodologies and processes."

Video: 50 minutes • Overheads