Canadian Regulators Will Permit Early Use Of Fund Facts

On February 24, 2011, the Canadian Securities Administrators published CSA Staff Notice 81-321 Early Use of the Fund Facts to Satisfy Prospectus Delivery Requirements [available here], which clearly signals the CSA's willingness to permit post-trade delivery of Fund Facts documents for mutual funds in lieu of the simplified prospectus. If relief is granted, the CSA will permit dealers to deliver only the Fund Facts document for a mutual fund in full satisfaction of the post-trade prospectus delivery obligation set out in securities regulation. The Staff Notice sets out the key terms and conditions that the CSA will impose when granting this discretionary relief.

There can be expected to be significant cost savings for the fund industry through reduced printing and mailing costs if the Fund Facts document is delivered in place of the simplified prospectus. The CSA also believe that investors will be better served by receiving the shorter Fund Facts documents. While it