Regulatory Alerts2022-02-03
Draft Regulation to Amend the Securities Regulation Concerning Modernization of the Prospectus Filing Model for Investment Funds
The Quebec securities regulator amends sections 98, 267, and 268 of the Securities Regulation to modernize prospectus filing fees for investment funds. The amendments establish fixed costs of $1,170 and $5,848 for mutual fund and money market fund facts documents filed under the new model. Additionally, continuous distribution fees are recalculated as 0.04 percent of the gross value of securities distributed in Québec, minus adjusted base thresholds of $1,155 and $5,775.
REGULATION TO AMEND THE SECURITIES REGULATION Securities Act (chapter V-1.1, s. 331, par. (9); s. 331.1, pars. (1), (3) and (9))
- The Securities Regulation (chapter V-1.1. r. 50) is amended by inserting, in section 98, “and the 24th month” after “12th month”;
- Section 267 of the Regulation is amended: (1) by inserting, in subparagraph 1, “except in the case of a mutual fund,” before “at”; (2) by inserting the following subparagraph after subparagraph 1: “(1.1) at the time of filing a fund facts document prepared in accordance with Form 81-101F3 of Regulation 81-101 respecting Mutual Fund Prospectus Disclosure (chapter V-1.1, r. 38), or an ETF facts document prepared in accordance with Form 41-101F4 of Regulation 41-101 respecting General Prospectus Requirements (chapter V-1.1, r. 14), $1,170 or, in the case of a money market fund, $5,848 per issuer and, as the case may be, for the group of holders distributing securities;”;
- Section 268 of the Regulation is amended by replacing the first paragraph of subparagraph 1 with the following: “(1) in the case of a continuous distribution, except in the case of the distribution of medium term notes, the fee to be paid at the time of filing the fund facts document prepared in accordance with Form 81-101F3 of Regulation 81-101 respecting Mutual Fund Prospectus Disclosure (chapter V-1.1, r. 38), is equal to the amount by which 0.04% of the gross value of the securities distributed in Québec during the last financial year exceeds $1,155 or $5,775 in the case of a money market fund.”;
- This Regulation comes into force on (indicate here the date of coming into force of this Regulation).
Share