On June 18, 2015, the Canadian Securities Administrators (CSA) proposed amendments that would require ETFs, being exchange-traded mutual funds, to furnish investors with a summary disclosure document called "ETF Facts".
ETF Facts must be made available to investors on the website of the ETF or the ETF manager. In addition, a dealer acting as agent for an investor must deliver the most recently filed ETF Facts to the investor within two days of the purchase of securities of an ETF. The ETF Facts must be filed at the same time as the ETF's prospectus and the prospectus certificate applies to the ETF Facts.
The changes to the ETF disclosure regime are proposed to be made by way of amendments to National Instrument 41-101 General Prospectus Requirements and its Companion Policy, including by the addition of a new Form 41-101F4 Information Required in an ETF Facts Document, and proposed consequential amendments to National Instrument 81-106 Investment Fund Continuous Disclosure and its Companion Policy.
The proposed amendments are part of the CSA's point of sale disclosure project about which we have previously written. For further information, please consult the CSA Notice and Request for Comment – Mandating a Summary Disclosure Document for Exchange-Traded Mutual Funds and its Delivery and the Sample ETF Facts Template published by the CSA. Comments on the proposed amendments are being accepted until September 16, 2015. Provided the proposed amendments are adopted as anticipated by early 2016, implementation would be fully phased-in by early 2018.
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.