BLG’s Countdown to Governance Practice Bulletins Will Help You Get Ready
Canadian securities regulators are expected to publish the final version of National Instrument 81-107 Independent Review Committees for Investment Funds later this summer. Assuming this timing is met, managers of investment funds that are reporting issuers, including mutual funds, closed-end funds, exchange–traded funds and scholarship plans, will be required to establish an independent review committee for those investment funds by mid-2007 (or within 6 months of the rule becoming effective).
NI 81-107 will be the most dramatic regulatory change for Canadian investment funds in over 20 years. Implementation of the mandatory independent oversight regime contemplated by NI 81-107 represents the final round in the decades-long debate over the need for enhanced oversight of Canadian investment funds.
NI 81-107 will likely contain transition timing. We recommend that fund managers start now to consider what changes NI 81-107 will require in their organizations and their funds.
We have monitored the progress of NI 81-107 since the CSA first proposed enhanced governance of mutual funds in their 2002 Concept Proposal, through to the first publication of NI 81-107 in January 2004 and then its second publication in May 2005. Our Investment Management Advisories about these publications are on our Web site www.blgcanada.com and are a good starting point to help you understand NI 81-107 and the regulators’ intentions.
To complement our existing publications, we will be releasing ten Practice Bulletins in a series entitled BLG’s Countdown to Governance, which will help you get ready for NI 81-107. Each Practice Bulletin will target an essential element of NI 81-107 and will focus on what you need to know to institute independent oversight for your funds. Once NI 81-107 is published in final form, we will describe the key features of the instrument, including any significant changes from earlier drafts. Our Practice Bulletins will be available on our Web site and you will be able to obtain copies from any lawyer in BLG’s Investment Management Group as they are released.
BLG’S COUNTDOWN TO GOVERNANCE PRACTICE BULLETINS WILL HELP YOU GET READY
Practice Bulletin 1: Setting up Your Independent Review Committee
Practice Bulletin 2: Ten Questions You Should Expect to be Asked by an IRC Candidate
Practice Bulletin 3: Indemnities, Insurance and Compensation
Practice Bulletin 4: Getting Started: Initiating your IRC
Practice Bulletin 5: The IRC’s First Meeting
Practice Bulletin 6: Managing Conflicts of Interest
Practice Bulletin 7: Presenting Conflicts to the IRC
Practice Bulletin 8: Presenting a Related Party Transaction to the IRC
Practice Bulletin 9: After the First Year: What’s Next?
Practice Bulletin 10: Developing Best Practices in Canada: Lessons Learned from the United States
If you would like to discuss NI 81-107 and how it will apply to you or if you wish to be added to our email distribution list, please contact your usual lawyer in BLG’s Investment Management Group or one of the following Investment Management Group leaders: John E. Hall – National Leader, Brad J. Pierce – Calgary Regional Leader, Richard W. Shannon – Montréal Regional Leader, Jeremy S.T. Farr - Ottawa Regional Leader, Lynn M. McGrade - Toronto Regional Leader or Jason J. Brooks - Vancouver Regional Leader.
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Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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