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UBC Theses and Dissertations

Transparency rules for derivatives, mutual funds and bonds : a comparative analysis of Canadian, Swiss and German laws Eggen, Mirjam

Abstract

This thesis examines disclosure requirements for mutual funds, bonds and retail derivatives in the Canadian, Swiss and German legal frameworks. By comparing the partially divergent Canadian and European approaches to regulating transparency in relation to these investment products, the paper aims at evaluating whether the present transparency requirements of the above jurisdictions provide investors with adequate information on the risks incurring from certain investments and enable them to compare different products and their characteristics with each other. In particular, the author argues that regulations establish adequate transparency only if they ensure that prospectuses disclose essential product characteristics in a timely manner and enable investors to clearly delimit different types of investment products from each other. The thesis demonstrates that the above goals can be best attained under a substantive approach to product regulation. However, slight modifications to the principle “same business, same risks, same rules” may be appropriate in relation to derivative structures whose characteristics require efficient procedures and simple disclosure documentation. Further, the thesis suggests that the implementation of transparency requirements is not always an adequate means to achieve an appropriate level of investor protection. Rather, transparency measures should be supported by the introduction of suitability assessments at the point of sale.

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Attribution-NonCommercial-NoDerivatives 4.0 International

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