CSA Publishes Amendments To Modernize The Prospectus Filing Model For Certain Investment Funds

by Barbara Hendrickson | Dec 5, 2024

The Canadian Securities Administrators (CSA) are adopting amendments to National Instrument 41-101 General Prospectus Requirements (NI 41-101), National Instrument 81-101 Mutual Fund Prospectus Disclosure (NI 81-101), related consequential amendments to NI 41- 101, NI 81-101 and National Instrument 81-106 Investment Fund Continuous Disclosure (NI 81- 106) and related consequential changes to Companion Policy 41-101 General Prospectus Requirements (41-101CP), and Companion Policy 81-101 Mutual Fund Prospectus Disclosure (81-101CP) (collectively, the Amendments).

The Amendments:

• extend the lapse date for investment funds in continuous distribution from 12 months to 24 months, which will allow investment funds in continuous distribution to file their pro forma prospectuses biennially, rather than annually (Lapse Date Extension), and

• repeal the requirement to file a final prospectus no more than 90 days after the issuance of a receipt for a preliminary prospectus (90-Day Rule Repeal) for all investment funds.

Implementation of the Amendments will modernize the prospectus filing model for investment funds, with a particular focus on investment funds in continuous distribution. The CSA’s modernization will better reflect the shift from the delivery of the prospectus to the delivery of the Fund Facts and ETF Facts to investors and reduce unnecessary regulatory burden imposed by the current prospectus filing requirements under securities legislation on investment funds without affecting the currency or accuracy of the information available to investors to make an informed investment decision.

In some jurisdictions, ministerial approvals are required for the implementation of the Amendments. Provided all ministerial approvals are obtained, the Amendments to NI 81-101, NI 41-101 and NI 81-106 will come into force on March 3, 2025 (the Effective Date).

The Amendments  are 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.