Canadian securities regulators implement eight initiatives to reduce regulatory burden on investment funds
MONTREAL and TORONTO, October 7, 2021 / CNW Telbec / – The Canadian Securities Administrators (CSA) today released amendments that implement eight initiatives to reduce the regulatory burden on investment funds. The amendments eliminate redundant requirements, streamline approvals and regulatory processes, and codify frequently granted exemptions from certain requirements.
“These initiatives are far-reaching and will allow investment funds and their managers to save time and money, while preserving investor protection and market efficiency,” said Louis Morisset, Chairman of the CSA and Chairman and Chief Executive Officer of the Autorité des marchés financiers.
- Continuous distribution investment funds will only need to file one simplified document each year instead of the simplified prospectus and the annual information form.
- Investment funds will be required to identify a website where their regulatory information will be published. This will formalize an existing industry practice, improve investor access to disclosure, and potentially create opportunities for additional burden reduction initiatives.
- Investment funds will not be required to file personal information forms with securities regulators as frequently.
- Investment funds will no longer be required to apply to securities regulators for an exemption to use the notice and access system; certain conflict of interest rules; and the requirement to provide fund facts and ETF facts documents for model portfolio products, portfolio rebalancing services and automatic switch programs.
In addition, investment funds will no longer be required to seek regulatory approval for a change in manager or a change in manager control, and will experience fewer instances where regulatory approval to engage in a merger is required. . For more information on the full scope of the changes, please see the CSA Notice of Amendment Reducing the Regulatory Burden for Investment Fund Issuers – Phase 2, Step 1.
These changes complement the first step of the CSA initiative to reduce the regulatory burden on issuers of investment funds. The next steps will include a more in-depth review of the prospectus filing regime; modernize the continuous disclosure regime; and explore alternatives to the current requirements for the delivery of various documents related to investment funds.
Subject to ministerial approval, if applicable, most changes will come into effect on January 5, 2022, and the rest on January 6, 2022. There are exemptions from some of the requirements to give issuers more time to comply.
The amendments, related policy changes and the accompanying notice can be found on the websites of CSA members.
The CSA, the Council of Securities Regulators from Canada provinces and territories, coordinates and harmonizes the regulation of Canadian financial markets.
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Canadian Securities Administrators
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Financial Markets Authority
For investor inquiries, please contact your local securities regulator.
SOURCE Financial Markets Authority