The Canadian Securities Administrators (CSA) have announced the final amendments (Amendments) to National Instrument 41-101 General Prospectus Requirements (NI 41-101) and National Instrument 81-101 Mutual Fund Prospectus Disclosure (NI 81-101).
The Amendments extend the lapse date for investment funds in continuous distribution from 12 months to 24 months, which will allow investment funds in continuous distribution to file their pro forma prospectuses biennially, rather than annually, and repeal the requirement to file a final prospectus no more than 90 days after the issuance of a receipt for a preliminary prospectus for all investment funds.
The Amendments will modernize the prospectus filing model for investment funds, with a particular focus on investment funds in continuous distribution. The CSA’s modernization will better reflect the shift from the delivery of the prospectus to the delivery of the Fund Facts and ETF Facts to investors and reduce unnecessary regulatory burden imposed by the current prospectus filing requirements under securities legislation on investment funds without affecting the currency or accuracy of the information available to investors to make an informed investment decision. The fund facts document (Fund Facts) and the ETF facts document (ETF Facts) will continue to be filed annually and will continue to be delivered to investors under the current delivery requirements.
National Instrument 81-101 Mutual Fund Prospectus Disclosure is available for download on the Ontario Securities Commission (OSC) website https://www.osc.ca/sites/default/files/2025-03/ni_20250303_81-101_unofficial-consolidation.pdf
National Instrument 41-101 General Prospectus Requirements is available for download on the OSC website https://www.osc.ca/sites/default/files/2025-03/ni_20250303_41-101_unofficial-consolidation.pdf
For more information, please call Barbara Hendrickson at BAX Securities Law (647) 403-4606.
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