CSA publish proposed amendments to mutual fund and investment fund regulatory framework
The Canadian Securities Administrators (CSA) today published proposed amendments to National Instrument 81-102 Mutual Funds, National Instrument 81-106 Investment Fund Continuous Disclosure and related consequential amendments. The amendments would codify exemptive relief that is frequently granted to mutual funds and other investment funds and is intended to replace a patchwork of exemptive relief orders with uniform requirements. The proposed amendments seek to address the following: exchange-traded mutual funds, investments in other mutual funds, short selling, derivatives, money market funds, mutual fund dealers, mutual fund ratings and continuous disclosure requirements.
Today's amendments are described by the CSA as representing the first phase in modernizing the regulation of conventional mutual funds and other investment funds. The second phase of the project will consider "whether there are any market efficiency, fairness or investor protection issues that arise out of the differing regulatory regimes" applying to different types of investment funds and other competing investment products. The CSA will then consider whether NI 81-102 should be further amended to address such issues.
