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Bulletin | Covid-19

The CSA Publish New Blanket Relief Orders Intended for Investment Funds and for Registrants and Unregistered Capital Markets Participants

Fasken
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Investment Management Bulletin

On May 20, 2020, the CSA published a press release announcing the issuance of an additional local harmonized blanket relief order intended for investment funds (the "New Investment Fund Order"). The CSA, except for the AMF and the MSC (collectively the "Participating Jurisdictions"), also published a press release on May 29 announcing the issuance of an additional local harmonized blanket relief order intended for registrants and unregistered capital markets participants (the "New Registrant Order"). Québec and Manitoba preferred to only issue temporary blanket relief from certain financial statement and information delivery requirements for registrants whose principal regulator ("PR") is one of the Participating Jurisdictions.

Both orders were issued in the context of the COVID-19 pandemic and follow the issuance of other local harmonized blanket relief orders published on March 23, 2020 (the "Initial Blanket Relief Orders"). Under no circumstances do these new orders provide a further extension of any deadline previously extended under the Initial Blanket Relief Orders and both will expire on November 30, 2020.

New Investment Fund Order

The New Investment Fund Order grants an additional 60 days from the deadline otherwise applicable under the securities legislation for the below filing and/or delivery requirements (the "Investment Fund Filing and/or Delivery Requirements") by any investment fund from June 2, 2020 to September 30, 2020 (the "Covered Period"). 

In order to benefit from the New Investment Fund Order, an investment fund shall as soon as reasonably practicable and in advance of its filing or delivery deadline:

(i) notify the appropriate securities commission stating that the investment fund is relying on the New Investment Fund Order and each applicable requirement for which it is relying on this order; and

(ii) post a statement on its public website, or the public website of its investment fund manager, stating that the investment fund is relying on the New Investment Fund Order and each applicable requirement for which it is relying on the New Investment Fund Order.

Investment Fund Filing an/or Delivery Requirements 

Québec, Ontario, British Columbia and Alberta

Investment Fund 

When investment fund distributes securities under a prospectus with a lapse date occurring during the Covered Period, the investment fund can postpone its prospectus lapse date 60 days later.

s. 2.5 NI 81-101 & 17.2 of NI 41-101 

When investment fund is not an ETF in continuous distribution and does not have a principal distributor

• compliance report 

s. 12.1 NI 81-102 

 

• filing and delivery to securityholders of annual financial statements & auditor's report

s. 2.2 NI 81-106 & 5.1(2) NI 81-106 

 

• filing and delivery to securityholders of interim financial information

s. 2.4 NI 81-106 & 5.1(2) NI 81-106 

When investment fund is not a scholarship plan

•  filing and delivery to securityholders of annual management report of fund performance

•  filing and delivery to securityholders of interim management report of fund performance

s. 4.2 NI 81-106 & 5.1(2) NI 81-106 

When investment fund is a scholarship plan

• annual management report of fund performance

s. 4.3 NI 81-106 

 

• delivery to securityholders of a request form to instruct the investment fund as to which of the documents the securityholder wishes to receive

s. 5.2(5) NI 81-106 &5.3(3) NI 81-106 

 

• delivery to securityholder of the documents requested by the securityholder

s. 5.4 NI 81-106 

 

• annual information form

s. 9.3 NI 81-106 

IRC 

 

• report to securityholder

s. 4.4 NI 81-107 

Custodian 

 

• compliance reports

s. 14.6(3) NI 41-101 & 6.7(3) NI 81-102 

Labour Sponsored/ Venture Capital Fund 

 

• independent valuation

s. 8.2(c) NI 81-106 

Québec, Ontario and Alberta only 

Investment Fund 

When mutual fund is not a reporting issuer

• notice of reliance on section 2.11 exemption to file financial statements

s. 2.11 NI 81-106  

Québec only 

Development Capital Investment Fund ("DCIF")

• annual financial statements & auditor's report

s. 6 Regulation DCIF 

• interim financial report and auditor's report

s. 8 Regulation DCIF 

• statement of its development capital investments

s. 18 Regulation DCIF 

• statement of its other investments

s. 21 Regulation DCIF 

• index of investments made by the specialized funds

s. 30 & 31 Regulation DCIF 

• annual management discussion and analysis

s. 51 Regulation DCIF 

• annual information form

s. 59 & 61 Regulation DCIF 

Alberta Only 

Investment Fund 

When investment fund is relying on the offering memorandum prospectus exemption

• annual financial statements

s. 2.9(17.4) NI 45-106 

New Registrant Order

The New Registrant Order grants an additional 60 days for periodic filings normally required to be made during the Covered Period by registrants and, in Ontario, unregistered capital markets participants that rely upon certain registration exemptions (the "Registrant Filing and/or Delivery Requirements").

According to the AMF, the decision to refuse to grant a 60-day extension for registrants for which the AMF acts as PR will allow the AMF to analyze the impact of the COVID-19 crisis and lockdowns on the liquidity and solvency of registered firms and take measures for investor protection. The AMF remains open to grant discretionary relief orders in favour of Québec registered firms that may have specific difficulties in complying with certain filing or delivery requirements during the Covered Period.

Registrant Filing An/Or Delivery Requirements 

Québec (only when PR is one of the Participating Jurisdictions),Ontario, British Columbia and Alberta

Dealer 

• annual financial statements

• interim financial information

• completed Forms 31-103F1 Calculation of Excess Working Capital ("Form 31-103F1")

s. 12.12(1)&(2) NI 31-103 

When investment dealer is a member of IIROC and is registered as an investment fund manager

• completed IIROC Forms 1 Joint Regulatory Financial Questionnaire and Report

s. 12.14(4)(b)&(c) NI 31-103 

Adviser 

• annual financial statements

• completed Form 31-103F1 

s. 12.13(a)&(b) NI 31-103 

IFM 

• annual financial statements 

• interim financial information 

• completed Forms 31-103F1 

• completed Forms 31-103F4 Net Asset Value Adjustments

s. 12.14(1)&(2) NI 31-103 

MFD 

When MFD is a member of MFDA and is registered as an exempt market dealer or scholarship plan dealer

• completed MFDA Forms 1 MFDA Financial Questionnaire and Report ("MFDA Form 1")

s. 12.12(2.1)(b)&(c) NI 31-103 

When MFD is a member of MFDA and is registered as an investment fund manager

• completed MFDA Forms 1

s. 12.14(5)(b)&(c) 

Québec only (only when PR is one of the Participating Jurisdictions)

Dealer, Adviser and IFM 

When registered under the Securities Act (QC)

• payment of certain fees

s. 271.5(3.1) of Securities Regulation (QC)

Dealer or Adviser (Derivatives) 

When registered under the Derivatives Act (QC)

• annual financial statements

• interim financial information

• completed Forms 31-103F1

s. 12.12(1)&(2) &12.13 31-1103

When registered under the Derivatives Act (QC)

• payment of certain fees

s. 5(4) of the Tariffs for costs and fees payable in respect of derivatives.

Ontario only 

Adviser (Commodity, futures) 

• audited financial statements

s. 15(1) of the CFA General Regulation 

Registered Firm or Unregistered Capital Markets Participant

When specified Ontario revenues for a previous financial year have been estimated:

• calculation of specified Ontario revenues

• determination of its participation fee shown in Appendix B of OSC Rule 13-502 Fees ("Rule 13-502") opposite the specified Ontario revenues

• if the participation fee determined under the above paragraph exceeds the participation fee paid under subsection 3.2(1) of Rule 13-502, payment of the balance owing and filing a completed Adjusted Form 13-502F4 Capital Markets Participation Fee Calculation and Form 13-502F5 Adjustment of Fee for Registrant Firms and Unregistered Exempt International Firms via the OSC electronic filing portal.

s. 3.2(2) of Rule 13-502 

Registered Firm 

When specified Ontario revenues for a previous financial year have been estimated:

• calculation of specified Ontario revenues

• determination of its participation fee shown in Appendix A of OSC Rule 13-503 (Commodity Futures Act) Fees ("Rule 13-503") opposite the specified Ontario revenues

• if the participation fee determined under the above paragraph exceeds the participation fee paid under subsection 2.3(1) of Rule 13-503, payment of the balance owing and filing of a completed Form 13-503F1 (Commodity Futures Act) - Participation Fee Calculation and Form 13-503F2 Adjustment of Fee Payment.

s. 2.3(2) of Rule 13-503 

Alberta Only 

Restricted Dealers 

• annual financial information

• completed Forms 31-103F1

• Form 1-FR-IB with annual and interim financial information

s. 1(b)(ii) and 1(b)(iv) of the exemption order applicable to each Restricted Dealers

 

These new orders are available on each CSA member's website. Links to the orders in Québec, Ontario, B.C. and Alberta can be found here:

New Investment Fund Order

AMF (PDF - French only):  Décision générale relative à la prolongation de certains délais de dépôt, de transmission et de renouvellement de prospectus applicables aux fonds d’investissement pour la période du 2 juin 2020 au 30 septembre 2020 

OSC:  Ontario Securities Commission, Ontario Instrument 81-505 (PDF)  

BCSC:  British Columbia Securities Commission, BC Instrument 81- 521  (PDF)

ASC:  Alberta Securities Commission, Blanket Order 81-507 (PDF) 

New Registrant Order

QC (PDF - French only):  Décision générale relative à une dispense de certaines des obligations réglementaires des personnes inscrites en valeurs mobilières et en dérivés  

OSC: Ontario Securities Commission, Ontario Instrument 31-513 (PDF)  

BCSC:  British Columbia Securities Commission, BC Instrument 32-527 (PDF)   

ASC:  Alberta Securities Commission, Blanket Order 31-535 (PDF)  

Should you have any question on the foregoing or need assistance in determining if the new orders are applicable to any specific situation, feel free to contact any member of our Investment Management team.

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