Registration Reform In Canada: Impact On Private Equity Fund Managers

Proposed registration reform in Canada will have a dramatic impact on private equity fund managers, investment advisers and dealers who are subject to the new requirements. Revised draft National Instrument 31-103 Registration Requirements ("NI 31-103" or the "Revised Draft Instrument"), which was republished for comment earlier this year, is designed to harmonize and streamline the registration regime across Canada. The Revised Draft Instrument addresses concerns raised by a record number of commentators on the original draft which was published in February 2007.

The Revised Draft Instrument raises a number of questions with respect to the applicability of various provisions to private equity fund managers. Accordingly, private equity participants will need to examine their activities closely in order to determine whether registration is required in the new "investment fund manager" category, as an