Region

Jurisdiction

Regulator

2021-10-07

Regulation to amend Regulation 81-102 respecting Investment Funds

The regulator amends Regulation 81-102 respecting Investment Funds to update disclosure requirements for proposed changes or transactions involving investment funds. The revised Section 5.4 mandates that notices include detailed statements in information circulars covering transaction descriptions, management expense ratio impacts, and comprehensive background information on new managers. These amendments, which also involve deletions in Sections 5.5 and 5.7, come into force on January 5, 2022, with a specific provision for Saskatchewan regarding delayed filing dates.

Canada

Autorite des marches financiers Quebec

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

Section 5.4 of Regulation 81-102 respecting Investment Funds (chapter V-1.1, r. 39) is amended by replacing paragraph (2) with the following: “(2) The notice referred to in subsection (1) must contain or be accompanied by the following: (a) a statement in an information circular that includes all of the following: (i) a description of the change or transaction proposed to be made or entered into; (ii) in the case of a matter 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 if the change were in effect throughout the investment fund’s last completed financial year; (iii) in the case of a matter referred to in paragraph 5.1(1)(b), (A) all material information regarding the business, management and operations of the new manager, including, for greater certainty, details of the history and background of its executive officers and directors within the 5 years preceding the date of the notice or statement, (B) a description of all material effects the change will have on the business, operations or affairs of the investment fund, (C) a description of all material effects the change will have on the investment fund’s securityholders, and (D) a description of any material changes made to any material contract regarding the administration of the investment fund; (iv) the date of the proposed implementation of the change or transaction; (b) all information and documents required to be sent in order to comply with the applicable proxy solicitation provisions of securities legislation for the meeting.”.
Section 5.5 of the Regulation is amended by deleting, in paragraph (1), subparagraphs (a), (a.1) and (c), and making the necessary changes.
Section 5.7 of the Regulation is amended by deleting, in paragraph (1), subparagraphs (a) and (c).
Effective Date (1) This Regulation comes into force on 5 January 2022. (2) In Saskatchewan, despite paragraph (1), if this Regulation is filed with the Registrar of Regulations after 5 January 2022, this Regulation comes into force on the day on which it is filed with the Registrar of Regulations.