The Canadian Securities Administrators recently
announced the adoption of final amendments that will implement
certain aspects of Phase 2 of the Modernization of Investment Fund
Product Regulation Project (the Amendments). As
we discussed in an earlier post, the stated objective of Phase
2 was to achieve fair and consistent product regulation across the
spectrum of retail investment funds, by broadly imposing certain
"core" operational requirements on all types of
publically offered (prospectus qualified) investment funds, whether
such funds are traditional mutual funds or non-redeemable
investment funds (NRIFs), which include closed-end funds and
exchange traded mutual funds.
Subject to Ministerial approval requirements, the Amendments
come into force on September 22, 2014. The Amendments, among other
things, introduce the imposition of core investment restrictions
for non-redeemable investment funds relating to investments for
control, investments in real
