Fund companies push back

Fund companies push back

Fund companies push back CSA might have been the first to blink in fund company showdown.

Three months after requesting data from mutual fund companies as part of a comprehensive report by finance professor Douglas Cumming, the CSA has hit a bump in the road.

Some mutual fund companies are demanding a confidentiality undertaking be provided by Professor Cumming that details the security, confidentiality and scope of use of their information. The data was originally requested by January 16, 2015.

Clearly, this hasn’t happened. As a result Rice has sent a letter acquiescing to the fund companies’ request.

Yesterday, WP discussed this very issue in an article about embedded compensation. Advisors’ futures hang in the balance so a quick resolution to this impasse is definitely hoped for.

Professor Cumming’s report was originally scheduled to be released by the end of March. Today’s developments suggest some time in the second quarter is more likely. 

  • Kevin O'Brien 2015-02-05 12:27:57 PM
    This possibly is too little too 11th hour effort that should have been initiated 15 years ago. The change is coming, it is with little or no regard to protecting investors and more about curbing poor sales practices -that being high transaction commissions with little or no advice.
    Post a reply
  • Robert Dewar 2015-02-05 9:56:54 PM
    Where is there a listing of Mutual fund companies are looking for Financial Advisors?
    Post a reply