Canadian securities regulators reduce regulatory burden for investment funds in continuous distribution

Toronto – The Canadian Securities Administrators (CSA) today announced final rules modernizing the prospectus filing model for investment funds that reduce regulatory burden without affecting the quality or timeliness of information available to investors.

Under the new rules, investment funds in continuous distribution will now be able to file prospectuses every two years instead of annually. Investors continue to have access to continuous disclosure documents, as well as the Fund Facts and the ETF Facts, which are updated annually, and will still be able to request the prospectus or access it online.

“Our modernization initiative ensures that investors still get the information they need to make informed investment decisions, while making the process more efficient for the fund industry,” said Stan Magidson, Chair of the CSA and Chair and CEO of the Alberta Securities Commission.

For all investment funds, the requirement to file a final prospectus no more than 90 days after the issuance of a receipt for a preliminary prospectus is also being repealed.

The final rules, which take effect on March 3, are available on CSA member websites.

The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.

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