Elemental Or Existential? CSA Propose Broad Amendments Relating To Public Investment Fund Exposure To Crypto Assets

On January 18, 2024, the Canadian Securities Administrators ("CSA") issued proposed amendments to National Instrument 81-102 Investment Funds ("NI 81-102") and Companion Policy 81-102 Investment Funds ("81-102CP") (collectively, the "Proposed Amendments"). The Proposed Amendments are intended to provide greater clarity within the regulatory framework for prospectus-offered investment funds investing in crypto assets ("Public Crypto Asset Funds" or "PCAFs"). In particular, the Proposed Amendments provide criteria relating to permitted investments, investment restrictions and custody requirements for PCAFs by seeking to codify practices of existing PCAFs arising from the review of their prospectus offerings and certain exemptive relief. The Proposed Amendments are available for a 90-day comment period.