The Canadian Securities Administrators (CSA) have published for review and comment a series of proposed amendments (The Proposed Amendments ), aimed at modernizing the continuous disclosure regime for investment funds for a period ending January 7, 2025. The Proposed Amendments are designed to provide investors with more focused and valuable disclosure while reducing the regulatory burden on investment fund managers.
The CSA proposes to replace the existing annual and interim Management Report of Fund Performance (MRFP) with a new annual and interim Fund Report. The proposed Fund Report was developed using behavioural insights research, which provides information on how people think, behave and make decisions. This included carrying out rigorous investor testing aimed at comparing the effectiveness of several alternative proposed versions of the Fund Report against a sample MRFP.
Among the continuous disclosure-related proposals put forward are:
- Provide exemptions from certain conflict of interest reporting requirements in securities legislation if other similar requirements are satisfied; and,
- Eliminate some required class- or series-level disclosures from investment fund financial statements not required by International Financial Reporting Standards.
The British Columbia Securities Commission (BCSC) is currently not publishing the Proposed Amendments for comment. BCSC Staff anticipate doing so following the British Columbia provincial general election, scheduled for October 19, 2024.
The Proposed Amendments are available for download from the website of the Participating Jurisdictions.
For more information, please call Barbara Hendrickson at BAX Securities Law (647) 403-4606.
This publication is not intended to constitute legal advice. No one should act on it or refrain from acting on it without consulting with a lawyer. BAX does not warrant or guarantee the accuracy or currency or completeness of the publication. No part of this publication may be reproduced without the prior written permission of BAX Securities Law.
