TORONTO, Feb. 9, 2012 /CNW/ - The Canadian Securities Administrators
(CSA) announced today the completion of the first phase of its "Modernization Project", which seeks to update the product
regulation of publicly offered investment funds.
The purpose of the Project is to modernize investment fund regulation,
making it more effective and relevant in today's more diverse and
increasingly innovative retail marketplace.
Specifically, the amendments introduced in the first phase recognize the
proliferation of Exchange Traded Funds (ETFs) and streamline their
access to the market by eliminating the need for them to apply for
regulatory exemptions. This will reduce regulatory costs, which is also
expected to benefit investors. The amendments are also designed to
enhance the resilience of money market funds to certain short-term
market risks, by introducing new liquidity requirements and term
"By modernizing these important investment fund rules, we are responding
to the rapidly evolving investment fund landscape, as well as
maintaining consistency with global standards," said Bill Rice, Chair
of the CSA, and Chair and Chief Executive Officer of the Alberta
Subject to ministerial approval, the amendments will come into force
April 30, 2012. The new requirements for money market funds will come
into force following a transition period.
To view the amended rules, please refer to the CSA Notice on National Instrument 81-102 Mutual Funds, which is available on the websites of various CSA members.
The CSA, the council of the securities regulators of Canada's provinces
and territories, co-ordinates and harmonizes regulation for the
Canadian capital markets.
SOURCE Canadian Securities Administrators
For further information:
Ontario Securities Commission
Alberta Securities Commission
Autorité des marchés financiers
British Columbia Securities Commission
Manitoba Securities Commission
New Brunswick Securities Commission
Nova Scotia Securities Commission
Saskatchewan Financial Services Commission
PEI Securities Office
Office of the Attorney General
Financial Services Regulation Div.
Newfoundland and Labrador
Yukon Securities Registry
Nunavut Securities Office