Regulatory Alerts2019-09-12
Draft Regulation to amend Regulation 81-107 respecting Independent Review Committee for Investment Funds
Canadian securities regulators issued a draft amendment to Regulation 81-107 to reduce regulatory burdens for investment fund issuers by expanding exemptions from conflict of interest restrictions. The changes permit investment funds and managed accounts to engage in inter-fund transactions, secondary market purchases of related non-exchange traded debt, and principal trades with related dealers, provided specific independent review committee approvals and pricing safeguards are met. These amendments clarify that the new exemptions apply to both reporting and non-reporting investment funds while maintaining strict record-keeping and market integrity requirements.
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