Toronto – The Canadian Securities Administrators (CSA) today published for comment amendments that would help mutual funds that voluntarily shorten their trade settlement cycle from two trading days to one (T+1).
The proposals are intended to complement the anticipated shift to T+1 in Canada by accommodating a range of settlement cycles for mutual funds, including those that make this change. The amendments clarify payment dates for transactions and the timeframe for forced redemption of securities for non-payment. In particular, for funds moving to T+1, the timeframe for forced redemption of securities for non-payment has changed from three days to two days after the pricing date.
The 90-day comment period closes on January 17, 2024 and the CSA Notice and Request for Comment on Proposed Amendments to National Instrument 81-102 Investment Funds can be found on CSA members’ websites.
The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.
Proposed Amendments to National Instrument 81-102 Investment Funds
Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Northwest Territories, Nova Scotia, Nunavut, Ontario, Prince Edward Island, Québec, Saskatchewan, Yukon
For investor inquiries, please contact your local securities regulator.
For media inquiries, please contact:
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Ilana KelemenCanadian Securities Administrators
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Crystal JongewardOntario Securities Commission