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2019-09-12

Draft Regulation to amend Regulation 81-102 respecting Investment Funds

The securities regulator amends Regulation 81-102 respecting Investment Funds to reduce regulatory burden for investment fund issuers. The changes prohibit mutual funds from bearing initial organization costs and update disclosure requirements by replacing references to annual information forms with ETF facts documents. Additionally, the amendment corrects French text terminology and aligns specific forms with new annexes to ensure consistency across the regulatory framework.

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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. (6), (8), (12), (16) and (34))

  1. Section 1.1 of Regulation 81-102 respecting Investment Funds (chapter V-1.1, r. 39) is amended by deleting, in the definition of the expression “sales communication”, subparagraph (2) of paragraph (b).
  2. Section 3.3 of the Regulation is amended by replacing paragraph (1) with the following: “(1) The costs of incorporation, formation or initial organization of a mutual fund, or of the preparation and filing of any of the preliminary prospectus, preliminary fund facts document, initial prospectus, or fund facts document of the mutual fund must not be borne by the mutual fund or its securityholders.”.
  3. Section 5.6 of the Regulation is amended, in subparagraph (f) of paragraph (1): (1) by inserting, in subparagraph (ii) and after the words “fund facts document”, the words “or ETF facts document”; (2) by deleting clause (II) of clause (A) of subparagraph (iii).
  4. Section 5.8 of the Regulation is amended by replacing, in the French text of paragraph (1), the words « ces fonctions suivant le changement direct ou indirect dans le contrôle sur cette personne » with the words « les fonctions de gestionnaire de fonds d’investissement suivant un changement direct ou indirect dans le contrôle de cette personne ».
  5. Section 10.3 of the Regulation is amended by deleting, in paragraphs (2) and (4), the words “or annual information form”.
  6. Section 15.1.1 of the Regulation is amended by replacing, in the French text of paragraph (b), “du Formulaire 81-101F3” with “de l’Annexe 81-101A3”.
  7. Section 15.2 of the Regulation is amended by deleting, in subparagraph (b) of paragraph (1), the words “, the preliminary annual information form” and the words “, the annual information form”.
  8. The Regulation is amended by replacing, wherever they appear in the French text, “du Formulaire 81-101F1” with “de l’Annexe 81-101A1”.
  9. This Regulation comes into force on (indicate here the date of coming into force of this Regulation).
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