The Canadian Securities
Administrators yesterday published guidance regarding the
use of a "Fund Facts" document to an satisfy current
prospectus delivery requirements. While amendments to NI 81-101 Mutual Fund Prospectus
Disclosure to finalize requirements to
produce and file the Fund Facts document became effective on
January 1, 2011, the use of the Fund Facts will not be mandatatory
until later this year. Yesterday's notice, however, anticipates
requests by investment funds for exemptive relief to use the Fund
Facts before their mandatory use (April 8, 2011 to begin filing the
Fund Facts documents with prospectuses, while funds will have until
July 8, 2011 before the Fund Facts documents must be filed for each
class or series of securities of the mutual fund).
As such, the guidance sets out a number of terms and conditions
that the CSA anticipates requiring as part of such an
The mutual fund must file a Fund Facts in compliance with Form
81-101F3 Contents of Fund Facts Document.
A mutual fund must continue to file the SP and annual
information form (AIF), as required by securities legislation.
Availability of documents
The Fund Facts must continue to be made available to investors
on the mutual fund's or mutual fund manager's website and
delivered or sent to investors free of charge upon request.
A mutual fund's SP and AIF must continue to be delivered or
sent to investors free of charge upon request.
A Fund Facts must be delivered in accordance with the current
prospectus delivery requirements under securities legislation.
The current withdrawal and rescission rights under securities
legislation that apply to delivery of, and failure to deliver, the
prospectus will apply to delivery of, and failure to deliver, the
Fund Facts. These rights must be disclosed in or with the Fund
A Fund Facts may only be bound with other Fund Facts that are
being delivered at the same time within the current prospectus
delivery requirements for mutual funds purchased by the
Expiry of exemptive relief
Any exemptive relief granted will expire upon the coming into
force of any legislation or rules relating to delivery of the Fund
Facts to satisfy the prospectus delivery requirements under
securities legislation. This is commonly referred to as a
According to the CSA, other terms and conditions may also be
considered. For more information, see CSA Staff Notice
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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The Canadian Office of the Superintendent of Financial Institutions ("OSFI") recently ruled that a bank cannot promote comprehensive credit insurance ("CCI") within its Canadian branches under the Insurance Business (Banks and Bank Holdings Companies) Regulations (the "Regulations").
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