Two Distinct Regulatory Approaches For Non-Resident Investment Fund Managers Finalized In Canada - Effective September 28, 2012.

The Canadian securities regulatory authorities are moving forward with two quite different regulatory approaches to non-resident investment fund manager (IFM) registration in Canada, notwithstanding the earlier unanimous commentary, including from BLG, that the CSA should adopt a uniform approach. The two different regulatory approaches raise obvious challenges, particularly for international fund managers wishing to market securities of their funds across Canada. In BLG's most recent Investment Management Bulletin, we describe the registration and exemption regime that will apply in three provinces and the policy approach that will apply in the rest of Canada. Each approach raises unique practical issues, with the registration and exemption approach being,in our view, the most problematic.