Aggregated News From Investment Management Regulators

Amendments to National Instrument 41-101 General Prospectus Requirements

Report/Flag

Please complete the required fields.



1. National Instrument 41-101 General Prospectus Requirements is amended by this Instrument.

2. Part 3C is amended by adding the following section:

3C.2.1 Delivery of ETF facts documents for no-trailing-commission ETF switches

(1) In this section,

“no-trailing-commission ETF switch” means, in respect of a client of a participating dealer, a purchase of securities of a class or series of an ETF in respect of which an investment fund manager does not pay the participating dealer a trailing commission immediately following a redemption of securities of another class or series of the ETF in respect of which the investment fund manager pays the participating dealer a trailing commission, if all of the following apply:

(a) the aggregate value of the securities purchased is the same as the aggregate value of the securities redeemed;

(b) there are no material differences between the class or series of securities purchased and the class or series of securities redeemed other than the rate of management fees charged in respect of the two classes or series;

(c) the participating dealer, who executed the purchase and redemption of the securities, was not required by securities legislation or the rules of an SRO applicable to the dealer to make a suitability determination in respect of the client in connection with those securities;

“suitability determination” has the same meaning as in section 1.1 of National Instrument 81-105 Mutual Fund Sales Practices.

(2) Despite subsection 3C.2(2), a dealer is not required to deliver or send to the purchaser of a security of an ETF the most recently filed ETF facts document for the applicable class or series of securities of the ETF in connection with a no-trailing-commission ETF switch..

Effective date

3.

(1) This Instrument comes into force on December 31, 2020.

(2) In Saskatchewan, despite subsection (1), if these regulations are filed with the Registrar of Regulations after December 31, 2020, these regulations come into force on the day on which they are filed with the Registrar of Regulations.

This news item was originally published by the Ontario Securities Commission (OSC CA). For more information, see the Source Link.

Regulator Information

Abbreviation: OSC
Jurisdiction: Canada

Recent Articles

Marielle Cohen-Branche is reappointed as AMF Ombudsman for a three-year term

After consultation with the Board and on appointment by AMF Chairman Robert Ophèle, Marielle Cohen-Branche started her fourth term as the AMF Ombudsman on 12 November.

Impossibility of acquiring shares of Companies in Participation Account by Real Estate Funds

This post was translated by Regulatory.News for informational purposes only; the content below is not an official translation from the regulator. See the content...

Information regarding the company IRB-BRASIL RESSEGUROS SA

This post was translated by Regulatory.News for informational purposes only; the content below is not an official translation from the regulator. See the content...

Volume 44, Issue 47

This news item was originally published by the Ontario Securities Commission (OSC CA). For more information, see the Read more

OSC Staff Notice: 51-732 – Corporate Finance Branch 2021 Annual Report

This news item was originally published by the Ontario Securities Commission (OSC CA). For more information, see the Read more

Get the latest from Regulatory.News in your inbox!

×