The
CSA announced last
week that it is adopting amendments to complete
the first phase of its project to modernize the product regulation
of publicly offered investment funds. The amendments, initially
published as a proposal in June 2010,
seek to codify exemptive relief frequently granted to address
market and product developments over the years in the investment
fund industry. According to the CSA, these amendments to NI 81-102 Mutual
Fundsand related consequential amendments
help to modernize the investment fund rules by making requirements
"more effective and relevant in today's more diverse and
increasingly innovative retail fund marketplace."
Specifically, among other things, the amendments will: (i)
eliminate the need for ETFs to seek exemptive relief from certain
operational requirements designed primarily for open-end
conventional mutual funds; (ii) allow mutual funds to short sell
securities subject to a cap of 20% of their net asset value; and
(iii)
