The Canadian Securities Administrators (CSA) has proposed a series of amendments that would provide an alternative to delivering financial statements and management reports of fund performance for investment fund reporting issuers (the Proposed Amendments). The Proposed Amendments are published for a 90-day consultation period ending December 26, 2022.

Together, the Proposed Amendments encompass proposed amendments to National Instrument 81-106 Investment Fund Continuous Disclosure (NI 81-106) and Companion Policy 81-106CP Continuous Disclosure Obligations (81-106CP), proposed consequential 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 Proposed Amendments will modernize existing delivery practices for investment fund continuous disclosure documents by increasing online availability and accessibility, which recognizes increased investor preference for accessing information electronically. This means investors will have access to information in a timely and environmentally friendly manner while also retaining the option to request documents in the form, either paper or electronic, that bests suit their needs. Investment funds will benefit from reduced long-term costs and regulatory burden without impacting investor protection.

To ensure clear investor communication and notification practices are in place, the amendments would require investment fund reporting issuers to:

  • Post continuous disclosure documents on their designated websites.
  • Alert investors when new documents are available by issuing a news release, which would also be posted to their designated websites and filed on the System for Electronic Document Analysis and Retrieval (SEDAR).
  • Send paper or electronic copies of the documents to investors upon request or in accordance with standing instructions.

Although the Proposed Amendments do not extend an access-based model to documents other than continuous disclosure documents, the CSA is looking to determine if there are other changes to delivery requirements that should be contemplated, such as changes that might facilitate broader adoption of electronic delivery of documents.

The Proposed Amendments can be downloaded from the website of members of the Canadian Securities Commission. Written comments must be submitted no later than December 26, 2022.

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.