Canadian Regulators Propose To Modernize Investment Fund Regulation

At the end of May 2011, the Canadian Securities Administrators issued CSA Staff Notice 81-322 Status Report on the Implementation of the Modernization of Investment Fund Product Regulation Project and Request for Comment on Phase 2 Proposals [ available here ]. The CSA Staff Notice follows on from the June 2010 publication of proposed amendments to National Instrument 81-102 Mutual Funds, which is described by the CSA as Phase 1 of the CSA's overall two-part project to modernize public investment fund regulation. BLG's Investment Management Bulletin Canadian Regulators Propose Modernized Rules for Mutual Funds: ETFs, Money Market Funds, Short Selling, Fund of Funds July 2010 describes the proposed amendments to NI 81-102 [ Bulletin available here ]. In the May 2011 Staff Notice, the CSA provide more details on the scope and timing of Phase 2 of the CSA's modernization project, particularly as it relates to investment funds that are not conventional mutual