CSA eases the regulatory burden on mutual funds


    According to the newly announced changes, mutual funds will only need to submit one streamlined document per year in ongoing distribution instead of submitting both the simplified prospectus and the annual information form. Funds also don’t have to submit personal data forms to securities regulators as often.

    To formalize an existing industry practice of electronic disclosure of disclosures, mutual funds must also identify a website where they post regulatory disclosures.

    In addition, investment funds no longer need to apply for an exemption to use the reporting and access system. They are also exempt from certain conflict of interest rules.

    The requirement for mutual funds to provide fund information and ETF factual documents for sample portfolio products, portfolio rebalancing services and products with automatic switching will also be removed.

    “In addition, mutual funds will no longer need to obtain regulatory approval for a change of manager or control and will experience fewer cases where regulatory approval is required for a merger,” the CSA said. “There are exemptions from some of the requirements to give issuers more time to comply.”


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