Compliance Memo

Compliance Memorandum 2015-04; Change of fund risk rankings: AGF Mutual Funds

For more information, contact:

Compliance Team
compliance@gpwealth.ca

Date Issued:

May 1, 2015

We have been advised by AGF Management Ltd that they have recently made changes to the risk ranking of the following funds:

AGF Canadian Large Cap Dividend Fund and the AGF Canadian Large Cap Dividend Class

  • Changing the risk ranking from a “Low/Medium” to a “Medium”.

AGF European Equity Class

  • Changing the risk ranking from a “Medium” to a “Medium/High”.

As both a best practice and regulatory requirement, please review each client’s portfolio holding any of these funds for suitability. At a minimum, a review of the clients KYC and portfolio must occur prior to the next transaction in the affected plan.

Where the risk ranking of the existing holdings now exceed the client’s stated “Plan Risk Tolerance”, a recommendation must be made to rebalance the client’s portfolio to bring it into compliance.

We must caution financial advisors that updating a client’s risk tolerance to simply match a new risk ranking with existing holdings in an effort to maintain the affected plans onside with KYC may be inappropriate. At minimum, when faced with this circumstance, advisor notes must be maintained documenting a discussion on the amended client risk tolerance with a client.

As always, if you have any questions or comments, contact the Compliance Department by email at compliance@gpwealth.ca.