Amendments to National Instrument 81-101 Mutual Fund Prospectus Disclosure

 

 

 

 

 

AMENDMENTS TO
NATIONAL INSTRUMENT 81-101 MUTUAL FUND PROSPECTUS DISCLOSURE

 

 

 

 

 

 

 

1. National Instrument 81-101 Mutual Fund Prospectus Disclosure is amended by this Instrument.

 

 

2. Item 9.1 of Part B of Form 81-101F1 Contents of Simplified Prospectus is replaced with the following:

Item 9.1 Investment Risk Classification Methodology

For a mutual fund,

(a) state in words substantially similar to the following:

The investment risk level of this mutual fund is required to be determined in accordance with a standardized risk classification methodology that is based on the mutual fund's historical volatility as measured by the 10-year standard deviation of the returns of the mutual fund.

(b) if the mutual fund has less than 10 years of performance history and complies with Item 4 of Appendix F Investment Risk Classification Methodology to National Instrument 81-102 Investment Funds, provide a brief description of the other mutual fund or reference index, as applicable; if the other mutual fund or reference index has been changed since the most recently filed prospectus, provide details of when and why the change was made; and

(c) disclose that the standardized risk classification methodology used to identify the investment risk level of the mutual fund is available on request, at no cost, by calling [toll free/collect call telephone number] or by writing to [address]..

3. Item 4 of Part I of Form 81-101F3 Contents of Fund Facts Document is amended by

(a) replacing in paragraph (2)(a) "adopted by the manager of the mutual fund" with "prescribed by Appendix F Investment Risk Classification Methodology to National Instrument 81-102 Investment Funds",

(b) deleting in paragraph 2(a) "mutual fund's", and

(c) replacing in the Instructions "adopted by the manager of the mutual fund" with "prescribed by Appendix F Investment Risk Classification Methodology to National Instrument 81-102 Investment Funds, as at the end of the period that ends within 60 days before the date of the fund facts document".

4. Subject to section 5, this Instrument comes into force on March 8, 2017.

5. The provision of this Instrument listed in column 1 of the following table comes into force on the date set in column 2 of the table:

Column 1: Provisions of this Instrument	Column 2: Date
Section 3	September 1, 2017