On July 24, amendments to Ontario's Securities Act came into effect that extend the conflict of interest investment restrictions previously applicable only to mutual funds to all investment funds.
In response, the Ontario Securities Commission has issued a notice providing staff's views on transition issues. Notably, in respect of non-redeemable investment funds that have not made the prospectus disclosure now required to engage in certain related-party transactions, staff interpret the amendments as applying only to non-redeemable investment funds that file a prospectus on or after July 24, 2014.
The notice also provides a discussion of the relationship between the amendments and the investment fund modernization rules that take effect in September.
For more information, see OSC Staff Notice 81-725.