CSA stretches prospectus timetable for funds in continuous distribution

The Canadian Securities Administrators (CSA) announced Thursday that investment funds in continuous distribution will no longer have to file a prospectus annually.

Beginning March 3, the requirement will be once every two years.

The need to file a final prospectus within 90 days of the issuance of a preliminary prospectus receipt is also being repealed, according to the release. That too will apply to all investment funds.

The steps are described as a “modernization” effort by the CSA in its notice, to “better reflect the shift from the delivery of the prospectus to the delivery of the Fund Facts and ETF Facts to investors and reduce unnecessary regulatory burden.”

Continuous disclosure documents, Fund Facts and ETF Facts are all posted annually. Investors will also still be able to ask for a prospectus or access it online.

“Our modernization initiative ensures that investors still get the information they need to make informed investment decisions, while making the process more efficient for the fund industry,” said Stan Magidson, chair of the CSA in a release. 

Kevin Press

Kevin Press is editorial director for Advisor.ca. He has been writing about money since 1997. Reach him at kevin@newcom.ca.