August 2006


On July 28, 2006 the Canadian Securities Administrators ("CSA") published National Instrument 81-107 Independent Review Committee for Investment Funds (the "Rule") in final form. The CSA state that the Rule imposes "a minimum, consistent standard of independent oversight for all publicly offered investment funds in each of the jurisdictions represented by the CSA." Thus, the Rule is the CSA's first legislated step in creating an investment fund governance regime for Canada — a regime that will apply not only to conventional public open-end mutual funds, but also to many other publicly offered investment funds in Canada including closed-end funds that trade on the Toronto Stock Exchange, labour-sponsored funds, flow-through share limited partnerships and commodity pools.

This bulletin describes the development of the National Rule and outlines the major provisions.