The Canadian Securities Administrators (CSA) have published a series of Final Amendments are designed to reduce the regulatory burden on investment fund managers while maintaining the quality and timeliness of disclosure for investors.
Together, CSA Notice of Amendments to National Instrument 81-101 Mutual Fund Prospectus Disclosure, National Instrument 81-102 Investment Funds, National Instrument 81-106 Investment Fund Continuous Disclosure, National Instrument 81-107 Independent Review Committee for Investment Funds and Changes to the Commentary in National Instrument 81-107 Independent Review Committee for Investment Funds – Modernization of the Continuous Disclosure Regime for Investment (the Final Amendments), modernize the continuous disclosure regime for investment funds.
The Final Amendments include:
- Exemptions from certain conflict of interest reporting requirements in securities legislation where similar requirements are already satisfied;
- Elimination of certain class- or series-level disclosures from investment fund financial statements that are not required under International Financial Reporting Standards; and,
- Minor editorial and other revisions to the simplified prospectus form.
A key part of The Final Amendments is the new annual and Interim Fund Report which replaces the existing annual and interim Management Report of Fund Performance (MRFP). The aim of the Fund Report is to create a document that is more streamlined and significantly less burdensome for fund managers to prepare, and more likely to be read and understood by investors compared to the MRFP. Based on stakeholder feedback, the regulator expects to develop and test a revised Fund Report that will be published later for a subsequent comment period.
The Final Amendments come into force April 22, 2026.
CSA Notice of Amendments to National Instrument 81-101 Mutual Fund Prospectus Disclosure, National Instrument 81-102 Investment Funds, National Instrument 81-106 Investment Fund Continuous Disclosure, National Instrument 81-107 Independent Review Committee for Investment Funds and Changes to the Commentary in National Instrument 81-107 Independent Review Committee for Investment Funds – Modernization of the Continuous Disclosure Regime for Investment Funds is available for download from the websites 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.