Background
On September 22, 2016, the Canadian Securities Administrators
(the "CSA") published their long-awaited
proposals for an alternative funds framework (the
"Proposals"). The Proposals involve
amendments to a number of national instruments governing the
formation and offering of investment funds, including National
Instruments 81-101, 81-102, 81-104, 81-106 and 81-107. The
Proposals establish a new category of "alternative
funds", being publicly offered mutual funds that utilize
alternative strategies or invest in alternative asset classes.
The CSA first proposed a new framework for regulating
alternative funds in early 2013. The CSA however encountered
significant challenges in defining the category and developing
proposals for its regulation. This required them to advance a
comprehensive regulatory review of non-redeemable investment funds
in September 2014 and to lag publication of the Proposals. The CSA
have requested specific comment concerning a
