The OSC Investor Office has recently published their research study Improving Fee Disclosure Through Behavioural Insights (OSC Staff Notice 11-787). This new study focuses on ways to improve the annual reports on charges and other compensation (annual fee reports) that investors receive. The report identifies 24 tactics registrants and other stakeholders can use to make annual fee reports more engaging and easier for investors to understand.
In the report, the possible tactics the investment industry can use to improve the investor experience are grouped around the following key barriers to investors using annual fee reports as intended:
- Barriers to engagement: Investors may not notice or recognize the importance of their annual fee report amid the various other disclosures provided to them.
- Barriers to comprehension: Investors may be confused by the terminology and information included in their annual fee report. They may not understand which fees are included (and which are excluded) from the report, and lack reference points to determine whether their fees are higher or lower than the norm.
- Barriers to action: Even if investors see and understand the report, they may not know how to act on the information it provides.