In late August, the Alberta Securities Commission staff published a notice advising that they intend to ask the ASC to issue a designation order to clarify how rules applicable to investment funds apply to mortgage investment entities that are investment funds.

According to the staff notice:

Because an Operational MIE may be an investment fund under the Act but in circumstances, other than relating to the registration requirement, it is considered more appropriate that such MIEs be subject to the rules applicable to non-investment funds, ASC staff intend to request that the Commission issue a designation order designating Operational MIEs to not be non-redeemable investment funds.

The designation order is expected to provide that, except for the registration requirement, Operational MIEs are designated not to be a non-redeemable investment fund.

The designation order is expected to be published sometime next week. For more information, see ASC Staff Notice 81-701.