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2019-09-12

Draft Regulation to Amend Regulation 81-102 Respecting Investment Funds

The securities regulator amends Regulation 81-102 to reduce regulatory burden for investment fund issuers by modifying disclosure requirements for material changes. The amendments introduce new obligations for issuers to describe proposed changes, quantify their impact on management expense ratios, and provide detailed information regarding new fund managers. These changes streamline reporting standards by deleting specific existing subparagraphs from sections 5.5 and 5.7 while enhancing transparency for transactions involving management changes.

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Autorite des marches financiers Quebec

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REGULATION TO AMEND REGULATION 81-102 RESPECTING INVESTMENT FUNDS Securities Act (chapter V-1.1, s. 331.1, par. (1), (8) and (16))

  1. Section 5.4 of Regulation 81-102 respecting Investment Funds (chapter V-1.1, r. 39) is amended by replacing, in paragraph (2), subparagraph (a) with the following: “(a) a description of the change or transaction proposed to be made or entered into; “(a.1) if the matter is one referred to in paragraph 5.1(1)(a) or (a.1), the effect that the change would have had on the management expense ratio of the investment fund had the change been in force throughout the investment fund’s last completed financial year; “(a.2) if the matter is one referred to in paragraph 5.1(1)(b), (i) information regarding the business, management and operations of the new investment fund manager, including details of the history and background of its officers and directors, (ii) how the change of manager will affect the business, operations or affairs of the investment fund and its securityholders, and (iii) information on any material contract regarding the administration of the investment fund that will be either amended or restated;”.
  2. Section 5.5 of the Regulation is amended by deleting, in paragraph (1), subparagraphs (a), (a.1) and (c), and making the necessary changes.
  3. Section 5.7 of the Regulation is amended by deleting, in paragraph (1), subparagraphs (a) and (c).
  4. This Regulation comes into force on (indicate here the date of coming into force of this Regulation).
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