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 restrictions.
"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 Securities Commission.
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.
The CSA, the council of the securities regulators of Canada's provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.
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