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Amendments to National Instrument 41-101: General Prospectus Requirements – Summary Disclosure Document and Delivery Regime for Exchange-Traded Mutual Funds [Completed]

Ef­fec­tive date:

Provided all necessary Ministerial approvals are obtained, the amendments will come into force on March 8, 2017. There will be a phased implementation of the requirements. Effective September 1, 2017, ETFs will be required to produce and file an ETF Facts and make it available on the ETF’s or the ETF manager’s website. Dealer delivery obligations related to the ETF Facts will come into effect on December 10, 2018.

Last up­dated:

December 2016

Overview

On June 18, 2015, the Canadian Securities Administrators (CSA) published for comment proposed amendments to National Instrument 41-101, General Prospectus Requirements that will require exchange-traded mutual funds (ETFs) to produce and file a summary disclosure document called “ETF Facts.” The proposed amendments also introduce a delivery regime for ETF Facts.

On December 8, 2016, the CSA published the final amendments in respect of this project.

The ETF Facts is to be written in plain language, is to be no more than two pages double-sided and is to highlight key information that CSA research has identified as important to investors. Under the amendments, an ETF will have to produce and file an ETF Facts and make it available on the ETF’s or the ETF manager’s website. Additionally, dealers that receive an order to purchase ETF securities will be required to deliver an ETF Facts to investors within two days of the purchase.

Prior to these amendments, dealers that account for the sale of the majority of ETF assets held by investors have delivered a summary disclosure document in lieu of a prospectus pursuant to exemptive relief from existing prospectus delivery requirements under securities legislation. The amendments will codify the form and content of the summary disclosure document for ETFs as well as extend the delivery obligation to all dealers who receive a purchase order for ETF securities. The terms of the exemptive relief will remain in effect until the amendments are fully implemented.

 

Re­cent ac­tiv­i­ties

December 2016

On December 8, 2016, the Canadian Securities Administrators published the final amendments in respect of this project.

June 2015

On June 18, 2015, the Canadian Securities Administrators (CSA) published for comment proposed amendments to National Instrument 41-101, General Prospectus Requirements that will require exchange-traded mutual funds (ETFs) to produce and file a summary disclosure document called “ETF Facts.” The proposed ETF Facts is written in plain language, is no more than two pages double-sided and highlights key information that CSA research has identified as important to investors.

 

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.