September 12, 2019
Canadian securities regulators propose eight initiatives to reduce regulatory burden for investment funds
Montreal and Toronto— The Canadian Securities Administrators (CSA) today published for comment proposed rule amendments aimed at implementing eight initiatives [link to notice] that seek to eliminate duplicative requirements, streamline regulatory processes, codify frequently-granted exemptions from certain rules for investment funds, and eliminate the need for certain regulatory approvals. These proposed changes are part of the CSA’s ongoing work to reduce regulatory burden for investment funds.
The proposals would reduce duplicative filing requirements by consolidating the Simplified Prospectus (SP) and Annual Information Form (AIF) for conventional mutual funds, as these contain overlapping disclosure in many places. The proposed rule amendments would also streamline regulatory processes by eliminating the filing of Personal Information Forms (PIFs) in connection with investment fund prospectus filings for individuals that are registered with securities regulators.
In addition, the proposed rule amendments would formalize a common industry practice by mandating that investment funds have a designated website for posting regulatory disclosure. This change will allow the CSA to consider alternative methods for providing and delivering disclosure to investors.
Staff anticipate that these changes can be implemented in the near-term. Longer-term, the CSA will look for burden reduction opportunities in other areas, including, continuous disclosure obligations, securityholder meetings and information circular requirements, prescribed notices and reporting requirements and prospectus regime provisions.
The notice and proposed rule amendments can be found on CSA members’ websites. Comments should be submitted in writing by December 11, 2019.
In 2017, the CSA began a project to identify opportunities to reduce regulatory burden for investment funds. Following a comprehensive review of the current investment fund disclosure regime, regulatory reforms conducted by international regulators, and feedback from stakeholders, the CSA published for comment CSA Staff Notice 81-329 Reducing Regulatory Burden for Investment Fund Issuers in 2018 that set out potential areas of focus for proposed rule amendments.
The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.
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For Investor inquiries, please refer to your respective securities regulator. You can contact them here.
For media inquiries, please refer to the list of provincial and
territorial representatives below or contact us at media@acvm-csa.ca.
For more information:
Kristen Rose |
Brian Kladko |
Hilary McMeekin Alberta Securities Commission 403-592-8186 |
Sylvain Théberge |
Jason (Jay) Booth |
Sara Wilson |
David C. Harrison |
Steve Dowling |
Renée Dyer |
Rhonda Horte |
Jeff Mason |
Tom Hall |
Shannon McMillan |
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