First Phase Of Modernization Complete

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    The Canadian Securities Administrators (CSA) has completed the first phase of its ‘Modernization Project’ which seeks to update the product regulation of publicly offered investment funds. The purpose of the project is to modernize investment fund regulation, making it more effective and relevant in today’s more diverse and increasingly innovative retail marketplace. Specifically, the amendments introduced in the first phase recognize the proliferation of Exchange Traded Funds (ETFs) and streamline their access to the market by eliminating the need for them to apply for regulatory exemptions. This will reduce regulatory costs, which is also expected to benefit investors. The amendments are also designed to enhance the resilience of money market funds to certain short-term market risks, by introducing new liquidity requirements and term restrictions.