Regulation to amend Regulation 81-102 respecting Investment Funds - Exemptions from Certain Repurchase Transactions Requirements for Investment Funds

REGULATION TO AMEND REGULATION 81-102 RESPECTING INVESTMENT FUNDS Securities Act (chapter V-1.1, s. 331.1, par. (1), (3), (4.1), (8), (11), (16), (17) and (19.5))

1. Section 2.13 of Regulation 81-102 respecting Investment Funds (chapter V-1.1,
   r. 39) is amended by adding, after paragraph (2), the following:
   “(3) Subparagraphs 2, 5 and 6 of paragraph (1) and paragraph (2) do not apply to an investment fund that
2. enters into a repurchase transaction under a written agreement with the
   Bank of Canada in respect of which the Bank of Canada is the purchaser, and
3. uses the cash from the sale proceeds received by the investment fund
   from the repurchase transaction for liquidity management of the investment fund. “(4) An investment fund that enters into a written agreement under paragraph (3) must, within 5 days after the date of the agreement, complete and deliver to the regulator, except in Québec, or securities regulatory authority a notice in the form contained in
   Appendix G-1.
   “(5) An investment fund that enters into a written agreement under paragraph (3) must complete and deliver to the regulator, except in Québec, or securities regulatory authority the following:
4. within 5 business days after the beginning of the repurchase
   transaction, a notice in the form contained in Appendix G-2;
5. as soon as reasonably practicable following the end of the term of the
   repurchase transaction, a report in the form contained in Appendix G-3.”.
6. Section 2.17 of the Regulation is amended by adding, after paragraph (4), the
   following:
   “(5) Paragraph (1) does not apply to an investment fund that complies with paragraph (3) of section 2.13.”.
7. The Regulation is amended by adding, after Appendix F, the following:
   “APPENDIX G-1
   Notice of a Bank of Canada Repurchase Agreement
8. Date of the written repurchase agreement with the Bank
   of Canada (dd/mm/yy)
9. Name of the investment fund manager
10. Name of each investment fund subject to the repurchase
    agreement
    “APPENDIX G-2
    Notice of a Bank of Canada Repurchase Transaction
11. Beginning (start date) of the Bank of Canada repurchase
    transaction (dd/mm/yy)
12. Name of the investment fund manager

2
3. Name of each investment fund subject to the repurchase
agreement
“APPENDIX G-3
Report of a Bank of Canada Repurchase Transaction

1. Date of the report (dd/mm/yy)
2. Name of the investment fund manager
3. Name of each investment fund subject to the repurchase
   agreement
4. Beginning (start date) of the repurchase transaction
   (dd/mm/yy)
5. End of term (end date) of the repurchase transaction
   (dd/mm/yy)
6. Repurchase transaction amount (in Canadian dollars)
7. Repurchase transaction amount as a percentage of the
   investment fund’s net asset value on the repurchase transaction start date (%)
8. The outstanding amount of all borrowings of each
   investment fund, including the amount of the sale proceeds delivered, as part of the repurchase transaction as a percentage of its net asset value on the repurchase transaction start date (%)
9. The outstanding amount of all borrowings of each
   investment fund as a percentage of its net asset value on the repurchase transaction end date (%) ”.
10. Effective date
    (1) This Regulation comes into force on (indicate here the date of coming into force of this Regulation). (2) In Saskatchewan, despite paragraph (1), if this Regulation is filed with the Registrar of Regulations after (indicate here the date of coming into force of this Regulation), this Regulation comes into force on the day on which it is filed with the Registrar of Regulations.