The Canadian Securities Administrators are publishing for comment revised versions of the continuous disclosure rules for investment funds.
The proposed revision to National Instrument 81-106 Investment Fund Continuous Disclosure will:
- harmonize continuous disclosure requirements among Canadian jurisdictions; and
- replace most existing local CD requirements.
It sets out the obligations of investment funds with respect to financial statements, management reports of fund performance, material change reporting, information circulars, proxies and proxy solicitation, delivery obligations, proxy voting disclosure and certain other CD-related matters.
If all necessary government approvals are obtained, the CSA expect the rule to be effective on Dec. 31, 2004. So, the filing deadlines for financial statements, management reports of fund performance and in the rule will be mandatory for financial years ending on or after December 31.
In some jurisdictions, including Ontario, Quebec and Saskatchewan, the rule addresses certain non-reporting investment fund obligations such as financial statement requirements. Non-reporting investment funds will not have these requirements in other jurisdictions such as British Columbia, Alberta and Manitoba.