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2019-09-12

Draft Regulation to Amend Regulation 81-106 Respecting Investment Fund Continuous Disclosure

The securities regulator amends Regulation 81-106 to reduce regulatory burden for investment fund issuers by standardizing disclosure requirements. The changes replace references to general websites with a mandatory 'designated website' for posting continuous disclosure documents and proxy voting records. A new Part 16.1 is introduced to define qualifying websites and require reporting issuers to designate a publicly accessible site maintained by the fund or its manager.

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Autorite des marches financiers Quebec

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REGULATION TO AMEND REGULATION 81-106 RESPECTING INVESTMENT FUND CONTINUOUS DISCLOSURE Securities Act (chapter V-1.1, s. 331.1, par. (2), (4.1), (8), (19.5), (20) and (34))

  1. Sections 5.2 and 5.3 of Regulation 81-106 respecting Investment Fund Continuous Disclosure (chapter V-1.1, r. 42) are amended by replacing the words “investment fund’s website, if applicable,” with the words “investment fund’s designated website”.

  2. Section 5.5 of the Regulation is replaced with the following: “5.5. Websites An investment fund that is a reporting issuer must post on its designated website any documents listed in subsection 5.1(2) no later than the date that those documents are filed.”.

  3. Section 6.2 of the Regulation is amended by replacing, in paragraph (2), the words “An investment fund that has a website must post to the website” with the words “An investment fund must post on its designated website”.

  4. Section 10.4 of the Regulation is amended by replacing, in paragraph (2), the words “An investment fund that has a website must post the proxy voting record to the website” with the words “An investment fund must post the proxy voting record on its designated website”.

  5. Section 11.2 of the Regulation is amended by replacing, in subparagraph (b) of paragraph (1), the words “on the website of the investment fund or the investment fund manager” with the words “on the investment fund’s designated website”.

  6. Section 14.2 of the Regulation is amended by replacing paragraph (7) with the following: “(7) An investment fund that arranges for the publication of its net asset value or net asset value per security on its designated website or in the financial press must ensure that its current net asset value or net asset value per security is posted on a timely basis on its designated website or provided on a timely basis to the financial press.”.

  7. The Regulation is amended by inserting, after Part 16, the following: “PART 16.1. INVESTMENT FUND WEBSITE “16.1.1. Application This Part applies to an investment fund that is a reporting issuer. “16.1.2. Requirement to Have a Designated Website (1) An investment fund must designate a qualifying website of the fund on which the fund intends to post regulatory disclosure required by securities legislation. (2) For the purposes of subsection (1), a “qualifying website” of an investment fund is a website that is (a) publicly accessible, and (b) established and maintained by the fund or by one or more of the following persons: (i) its investment fund manager; (ii) an affiliate or an associate of its investment fund manager; (iii) another investment fund that is part of its investment fund family.”.

  8. Form 81-106F1 of the Regulation is amended: (1) in Part B: (a) by replacing, in item 1, “website at [insert address]” with “website at [insert the address of the designated website]”; (b) by replacing, in paragraph (9) of the instructions under item 5, “are available on the internet at www.sedar.com.” with “are available on the investment fund’s designated website and at www.sedar.com.”; (2) by replacing, in item 1 of Part C, “website at [insert address]” with “website at [insert the address of the designated website]”.

  9. This Regulation comes into force on (insert here the date of coming into force of this Regulation).

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