Regulatory Alerts2015-01-22
CSA Staff Notice 44-305: 2015 Update – Structured Notes Distributed Under the Shelf Prospectus System
The Canadian Securities Administrators issued this notice to update regulatory expectations for structured notes distributed under the shelf prospectus system, supplementing previous guidance on linked notes. Issuers are now generally required to disclose the estimated fair value of notes and embedded profit margins, while also providing clearer information on suitability, fee transparency, and the distinction between price and total return indices. The notice further mandates the removal of liability disclaimers for third-party information and imposes strict requirements on ongoing disclosure and the pre-clearance of novel products linked to actively managed investment funds.
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