On April 3, 2013 staff of the Ontario Securities Commission published OSC Staff Notice 81-719 Effect of Proposed Income Tax Act Amendments on Investment Funds – Character Conversion Transactions. The notice sets outs the views of OSC staff with respect to proposed amendments to the Income Tax Act (Canada) concerning character conversion transactions that were announced in the 2013 federal budget. Staff ask that investment fund managers consider the need to cap affected funds to new and additional investments as well as whether it is appropriate to communicate with current securityholders about the proposed amendments and the potential impact on the applicable funds. Staff also states that investment fund managers must consider longer term responses, including whether the affected funds need to be restructured, reorganized or terminated.