Canadian securities regulators modernize rules concerning mutual funds

TORONTO, Feb. 9, 2012 /CNW/ - The Canadian Securities Administrators (CSA) announced today the completion of the first phase of its "Modernization Project", which seeks to update the product regulation of publicly offered investment funds.

The purpose of the Project is to modernize investment fund regulation, making it more effective and relevant in today's more diverse and increasingly innovative retail marketplace.

Specifically, the amendments introduced in the first phase recognize the proliferation of Exchange Traded Funds (ETFs) and streamline their access to the market by eliminating the need for them to apply for regulatory exemptions. This will reduce regulatory costs, which is also expected to benefit investors. The amendments are also designed to enhance the resilience of money market funds to certain short-term market risks, by introducing new liquidity requirements and term restrictions.

"By modernizing these important investment fund rules, we are responding to the rapidly evolving investment fund landscape, as well as maintaining consistency with global standards," said Bill Rice, Chair of the CSA, and Chair and Chief Executive Officer of the Alberta Securities Commission.

Subject to ministerial approval, the amendments will come into force April 30, 2012. The new requirements for money market funds will come into force following a transition period.

To view the amended rules, please refer to the CSA Notice on National Instrument 81-102 Mutual Funds, which is available on the websites of various CSA members.

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

Carolyn Shaw-Rimmington
Ontario Securities Commission
416-593-2361      

Mark Dickey
Alberta Securities Commission
403-297-4481

Sylvain Théberge
Autorité des marchés financiers
514-940-2176      

Richard Gilhooley
British Columbia Securities Commission
604-899-6713

Ainsley Cunningham
Manitoba Securities Commission
204-945-4733      

Wendy Connors-Beckett
New Brunswick Securities Commission
506-643-7745

Shirley Lee
Nova Scotia Securities Commission
902-424-5441

Jennifer Anderson 
Saskatchewan Financial Services Commission
306- 798-4160 

Janice Callbeck
PEI Securities Office
Office of the Attorney General
902-368-6288      

Doug Connolly
Financial Services Regulation Div.
Newfoundland and Labrador
709-729-2594

Helena Hrubesova
Yukon Securities Registry
867-667-5466      

Louis Arki
Nunavut Securities Office
867-975-6587

Donn MacDougall
Northwest Territories
Securities Office
867-920-8984