OSC Notice of Coming into Force of Local Amendments to National Instrument 41-101 General Prospectus Requirements, National Instrument 81-106 Investment Fund Continuous Disclosure, and National Instrument 81-107 Independent Review Committee for Investment Funds

OSC NOTICE OF COMING INTO FORCE OF LOCAL AMENDMENTS TO NATIONAL INSTRUMENT 41-101 GENERAL PROSPECTUS REQUIREMENTS, NATIONAL INSTRUMENT 81-106 INVESTMENT FUND CONTINUOUS DISCLOSURE, AND NATIONAL INSTRUMENT 81-107 INDEPENDENT REVIEW COMMITTEE FOR INVESTMENT FUNDS

March 17, 2022

On December 7, 2021 the Ontario Securities Commission (the OSC) adopted

• local amendments to National Instrument 41-101 General Prospectus Requirements (NI 41-101),

• local amendments to National Instrument 81-106 Investment Fund Continuous Disclosure (NI 81-106), and

• local amendments to National Instrument 81-107 Independent Review Committee for Investment Funds (NI 81-107)

in Ontario (collectively, the Local Amendments), and

• local changes to Companion Policy 81-101 Mutual Fund Prospectus Disclosure (81-101CP), and

• local changes to the commentary in NI 81-107

in Ontario (collectively, theLocal Changes).

The above material was published on January 13, 2022 in the Bulletin. See (2022), 45 OSCB 308.

The text of the Local Amendments is contained in Annexes A, C and D of this Notice. The text of the Local Changes is contained in Annexes B and E of this Notice.

Effective Dates

Pursuant to section 143.4 of the Securities Act (Ontario), the Local Amendments will come into force on April 13, 2022.

The Local Change in Annex B will become effective on June 2, 2022. The Local Change in Annex E will become effective on April 13, 2022.

Contents of Annexes

Annex A: Local Amendments to National Instrument 41-101 General Prospectus Requirements in Ontario

Annex B: Local Change to Companion Policy 81-101 Mutual Fund Prospectus Disclosure in Ontario

Annex C: Local Amendments to National Instrument 81-106 Investment Fund Continuous Disclosure in Ontario

Annex D: Local Amendment to National Instrument 81-107 Independent Review Committee for Investment Funds in Ontario

Annex E: Local Change to the Commentary in National Instrument 81-107 Independent Review Committee for Investment Funds in Ontario

 

ANNEX A

LOCAL AMENDMENTS TO NATIONAL INSTRUMENT 41-101 GENERAL PROSPECTUS REQUIREMENTS IN ONTARIO

1. National Instrument 41-101 General Prospectus Requirements is amended by this Instrument.

2. Form 41-101F2 Information Required in an Investment Fund Prospectus is amended by replacing in Item 19.4(c) "available on the [investment fund's/investment fund family's] Internet site at [insert investment fund's Internet site address]" with "available on the investment fund's website at [insert the investment fund's designated website address]".

3. Form 41-101F3 Information Required in a Scholarship Plan Prospectus is amended by replacing Item 12(2) of Part A with the following:

(2) State the name, address, toll-free telephone number and email address of the investment fund manager of the plan and the scholarship plan's designated website address. If applicable, also state the website address of the investment fund manager of the plan..

4. Subparagraph 9.1(1)(b)(ii) is amended by deleting "and" following subclause 9.1(1)(b)(ii)(C)(II).

Transition

5. Before September 6, 2022, an investment fund is not required to comply with National Instrument 41-101 General Prospectus Requirements, as amended by sections 2 and 3 of this Instrument, if the investment fund complies with National Instrument 41-101 General Prospectus Requirements as it was in force on January 5, 2022.

Effective Date

6. This Instrument comes into force in Ontario on April 13, 2022.

 

ANNEX B

LOCAL CHANGE TO COMPANION POLICY 81-101 MUTUAL FUND PROSPECTUS DISCLOSURE IN ONTARIO

1. Companion Policy 81-101 Mutual Fund Prospectus Disclosure is changed by this Document.

2. The Sample Fund Facts Document in Appendix A -- Sample Fund Facts Document is replaced by the following:

3. This change becomes effective in Ontario on June 2, 2022.

 

ANNEX C

LOCAL AMENDMENTS TO NATIONAL INSTRUMENT 81-106 INVESTMENT FUND CONTINUOUS DISCLOSURE IN ONTARIO

1. National Instrument 81-106 Investment Fund Continuous Disclosure is amended by this Instrument.

2. Subsections 12.2.2(2), 12.2.3(1) and 12.2.3(2) are amended by replacing "12.2.1(1)(g)(ii)" with "12.2.1(g)(ii)".

Effective Date

3. This Instrument comes into force in Ontario on April 13, 2022.

 

ANNEX D

LOCAL AMENDMENT TO NATIONAL INSTRUMENT 81-107 INDEPENDENT REVIEW COMMITTEE FOR INVESTMENT FUNDS IN ONTARIO

1. National Instrument 81-107 Independent Review Committee for Investment Funds is amended by this Instrument.

2. Section 6.2 is amended by adding the following section heading:

6.2 Transactions in securities of related issuers .

Effective Date

3. This Instrument comes into force in Ontario on April 13, 2022.

 

ANNEX E

LOCAL CHANGE TO COMMENTARY IN NATIONAL INSTRUMENT 81-107 INDEPENDENT REVIEW COMMITTEE FOR INVESTMENT FUNDS IN ONTARIO

1. The Commentary to National Instrument 81-107 Independent Review Committee for Investment Funds is changed by this Document.

2. Commentary 1 to section 6.5 is changed by adding the following at the end of the second paragraph:

Paragraph 1(d) requires that the market quotations for the transactions be transparent. The CSA expect that if the price information is publicly available from a marketplace, newspaper or through a data vendor, for example, this will be the price. If the price is not publicly available, the CSA expect the investment fund to obtain at least one quote from an independent, arm's-length purchaser or seller, immediately before the purchase or sale..

3. This change becomes effective in Ontario on April 13, 2022.