The Canadian Securities Administrators has issued a notice to alert investment funds to the new continuous disclosure obligations they are likely to face under a new rule.
On May 28, 2004, the CSA published for comment a revised version of its proposed national rule dealing with investment fund continuous disclosure, which will replace existing continuous disclosure obligations of investment funds, as well as introduce new obligations. The CSA is currently considering the public comments on the proposed rule and incorporating changes.
On Friday, it issued a notice to “assist investment funds in planning for the implementation of any necessary systems or changes in order to be able to comply with [the new rule] when it comes into force.”
Subject to receiving all necessary commission and ministerial approvals, CSA staff anticipate the requirements for:
- annual financial statements and annual management reports of fund performance will apply for financial years ending on or after June 30, 2005;
- interim financial statements and interim management reports of fund performance will apply for financial periods ending after the investment fund’s first year end following June 30, 2005;
- quarterly portfolio disclosure will apply for periods that end on or after the date it comes into force;
- annual information forms will apply for financial years ending on or after June 30, 2005;
- proxy voting records will apply for the annual period beginning July 1, 2005; and
- proxy solicitation and information circulars will apply as of July 1, 2005.
All other requirements will apply as of the date the new rule comes into force.