Alternative funds offer investors the potential for diversification of assets, attractive risk-adjusted returns, and downside risk mitigation. However, their frequently complex investment strategies as well as restrictions on redeemability of units have raised securities regulators’ concerns about the appropriateness of letting retail investors buy and hold such funds. To date, therefore, the Canadian securities regulatory framework generally has prohibited the public offering of most alternative funds. That regulatory framework is set to change, once the Canadian Securities Administrators (CSA) finalize their new rules for publicly offered alternative funds. In September 2016, they published a detailed rule proposal (Alternative Fund Rules) and have been considering comments and revising their approach since then. We believe that the final iteration of the rules is coming very soon.