September 27, 2002
For Immediate Release

The CSA publishes new rules on investment fund continuous disclosure

Toronto - The Canadian Securities Administrators (the CSA), the umbrella organization representing Canada's provincial and territorial securities regulators, has published for comment a draft Rule on investment fund continuous disclosure.

The proposed regime is aimed at providing investors and their advisers with timely and useful information to better assess an investment fund's performance, position and future prospects, by presenting financial and non-financial information for all types of investment funds in the same format. The new regime also harmonizes the reporting requirements for investment funds across jurisdictions.

The draft Rule applies to all types of investment funds, including but not limited to, mutual funds, exchange traded funds, split share corporations, labour sponsored investment funds, closed end funds and scholarship plans. Some key measures detailed in the draft Rule include:

  • The introduction of narrative annual and quarterly management reports of fund performance.
  • The elimination of mandatory delivery of financial statements.
  • The right of investors to choose whether to receive financial statements and management reports of fund performance.
  • The reduction of filing times to 90 days for annual and 45 days for interim financial statements, which delays will be the same for filing of management reports of fund performance.
  • The removal of sometimes outdated performance information and financial highlights from mutual fund simplified prospectuses.

Proposed National Instrument 81-106, Form 81-106F1 on the contents of annual and quarterly management reports of fund performance and Companion Policy 81-106, were published on September 20 for public comment.

The proposed rules may be viewed at the commission websites listed below. The public comment period ends December 19, 2002.

Media Relations Contacts:

Joni Delaurier
Communications Co-ordinator
Alberta Securities Commission
(403) 297-4481

Andrew Poon
B.C. Securities Commission
1-800-373-6393 (B.C. & Alberta only)

Ainsley Cunningham
Manitoba Securities Commission
1-800-655-5244 (Manitoba only)

Eric Pelletier
Manager, Media Relations
Ontario Securities Commission
(416) 595-8913

Barbara Timmins
Commission des valeurs mobilires du Qubec
1-800-361-5072 (Quebec only)