CSA reviews regulatory burden for investment fund issuers

CSA has published an update to its project identifying opportunities to reduce regulatory burden on investment fund issuers.

CSA Staff Notice 81-329 Reducing Regulatory Burden for Investment Fund Issuers proposes four initiatives as part of the CSA Rationalization of Investment Fund Disclosure project, established in 2017. The four initiatives are:

• codifying exemptive relief that is routinely granted;
• using web-based technology to provide certain information about investment funds;
• removing redundant information in select disclosure documents; and
• minimizing the filing of documents that may contain duplicative information, such as personal information forms.

To identify the focus areas for reducing regulation, CSA conducted a review of the current investment fund disclosure regime and evaluated disclosure elements borrowed from the non-investment fund reporting issuer regime. CSA also received feedback from stakeholders and considered international regulation.

CSA expects to publish for comment proposed rule amendments to address the initiatives by March 2019.

The full notice can be read here.

Read: CSA outlines disclosure expectations for REITs and REOCs

CSA seeks feedback on post-trade transparency requirements for debt securities

CSA has also published for comment proposed amendments to introduce mandatory post-trade transparency requirements for government debt securities, and to expand transparency requirements for corporate debt securities.

The amendments, found in CSA Staff Notice 21-323, also align the post-trade transparency regimes for government and corporate debt securities.

“Mandatory transparency of debt markets supports investors in making informed trading decisions and is an important element of fair and efficient capital markets,” said Louis Morisset, chair of CSA, and president and CEO of the Autorité des marchés financiers, in a release.

The proposed government debt framework was developed with input from a working group comprising staff of the Bank of Canada, Department of Finance Canada and IIROC. This framework would be established as a result of the proposed amendments. Additionally, an information processor (IP) for government debt securities would be appointed and would set the requirements. The amendments would require a person or company that executes trades in government debt securities to provide information regarding these trades to the IP. Under the proposal, dealers, interdealer bond brokers (IDBBs), marketplaces and Schedule I, II and III banks would be required to report details of their government debt transactions to the IP.

Similarly, the expanded corporate debt proposal would extend the existing corporate debt transparency provisions to require a person or company that executes transactions in corporate debt securities to provide information regarding trades in these securities to an IP. As a result, mandatory post-trade transparency of trades in corporate debt securities would apply to entities beyond dealers, marketplaces and IDBBs and would include Schedule I, II and III banks.

CSA is proposing that IIROC’s mandate as IP for corporate debt securities would be expanded to include government debt securities. CSA staff would continue to conduct oversight activities to ensure that IIROC complies with the requirements in NI 21-101 and the terms and conditions set by the regulatory authorities in each jurisdiction.

The deadline for comments is Aug. 29, 2018.

The staff notice and request for comments can be found here.

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