In January 2022, the Canadian Securities Administrators published Staff Notice 81-334, ESG-Related Investment Fund Disclosure (the Staff Notice).

The purpose of the Staff Notice is to provide guidance on the disclosure practices of investment funds as they relate to environmental, social and governance (ESG) considerations. In particular, it provides guidance on funds that investment objectives reference ESG factors (ESG Funds) and other funds that use ESG strategies (ESG Strategy Funds, and together with ESG Funds, ESG-Related Funds). This Notice also provides guidance on the types of investment funds that may market themselves as being focused on ESG.

The guidance provided by the Staff Notice is based on existing securities regulatory requirements and does not create any new legal requirements or modify existing ones. The Staff Notice clarifies and explains how the current securities regulatory requirements apply to ESG-related investment fund disclosure. It also includes best practices that, while not required, CSA notes that they would enhance ESG-related disclosure and sales communications. The Staff Notice aims to bring greater clarity to ESG-related fund disclosure and sales communications to enable investors to make more informed investment decisions.

The full CSA Staff Notice 81-334, ESG-Related Investment Fund Disclosure may be download from CSA member websites.

For more information, please call Barbara Hendrickson at BAX Securities Law (416) 601-1004.

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.