The Canadian Securities Administrators published a notice yesterday
providing an update on the project to modernize investment fund
product regulation. As
we discussed in June 2010, the first
phase of the project involves amending NI 81-102 Mutual
Funds and NI 81-106 Investment Fund
Continuous Disclosure to codify exemptive
relief that is frequently granted to mutual funds and other
investment funds and replace the patchwork orders with uniform
requirements. Amendments to that end were proposed last year and,
according to yesterday's notice, the CSA intend to publish the
amendments in final form by the end of the summer.
Meanwhile, Phase 2 of the modernization project involves
identifying and addressing issues concerning market efficiency,
investor protection and fairness that arise out of the differing
regulatory regimes that apply to different types of publicly
offered investment funds. A stated aim of this phase, which is to
be implemented in two stages, is
