ETF Facts Now Required For Canadian Exchange-Traded Funds — Two-Year Phased-In Implementation

The Canadian Securities Administrators (the CSA) continue to refine the disclosure regime applicable to investment funds, with final rules released on December 8, 2016 requiring ETF facts documents to be prepared and delivered post-trade. The final rules codify the requirement for exchange-traded funds (ETFs) to prepare, and for dealers to deliver, a summary document in the form of "ETF Facts" prescribed by the new Form 41-101F4 Information Required in an ETF Facts Document, and provide for a statutory right of action for failure to deliver the ETF Facts. The final rules look much like those that were proposed in June 2015¹; however, there are a few differences between the proposed rules and the new regime that we highlight below. The final rule amendments to National Instrument 41-101 General Prospectus Requirements, Companion Policy 41-101CP, and Form 41-101F4, are available here. These amendments come into force on March 8, 2017, with a two-year phased-in