Record keeping requirements for mutual fund companies registered with the Ontario Securities Commission are outlined in National Instrument 31-103 – Registration Requirements, Exemptions and Ongoing Registrant Obligations. We have summarized some of the relevant information:
Firms are required to provide a “position cost” for securities in investor statements. Position cost information is an investment performance measurement tool that provides investors with a comparison to the market value of each security position they have open. Position cost may be either the book cost or the original cost of the securities – your firm must clearly explain the method they are using in your statement.
The position cost may be different than the adjusted cost base (ACB) for income tax purposes. Registered firms may provide clients with tax cost as supplementary information if they wish to do so, however this is not a requirement. Speak to your financial advisor or a tax professional to understand how to determine the ACB of your investments for tax purposes, and learn more about ACB from the Canada Revenue Agency.