On January 3, 2019, the final phase of the Canadian Securities
Administrators ("CSA")'s
Modernization of Investment Fund Product Regulation
Project relating to the establishment of a regulatory
framework for alternative mutual funds came into effect. These
amendments introduced a new category of mutual funds,
"alternative mutual funds", which are mutual funds that
have adopted investment objectives that permit those funds to
invest in physical commodities or specified derivatives, borrow
cash or engage in short selling in a manner not typically permitted
for "regular" mutual funds.
These amendments moved most of the regulatory framework then
applicable to commodity pools under National Instrument 81-104
– Commodity Pools (now renamed "Alternative
Mutual Funds") ("NI 81-104")
into National Instrument 81-102 – Investment Funds,
with the exception of the proficiency standards for mutual fund
dealers distributing alternative mutual funds. These proficiency
standards
