Regulatory Alerts2019-09-12
Draft Regulation to amend Regulation 81-102 respecting Investment Funds
Canadian securities regulators issued this draft regulation to amend Regulation 81-102 respecting Investment Funds to reduce regulatory burden for investment fund issuers. The amendments modify Section 5.3 by updating a reference to the Income Tax Act, insert requirements for information circulars in Section 5.4, and revise Section 5.6 to clarify conditions for fund reorganizations and exchanges. Specifically, the changes allow for transactions with differing investment objectives or tax treatments provided that meeting materials disclose these differences and explain why the transaction is in the best interests of security holders.
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