National Instrument 81-102 — Investment Funds (NI 81-102)

This Canadian National Instrument regulates:

This Instrument does not apply to a scholarship plan.

On December 10, 2015, the Canadian Securities Administrators (CSA) published for a 90-day comment period a Notice and Request for Comments on CSA Mutual Fund Risk Classification Methodology for Use in Fund Facts and ETF Facts – Proposed Amendments to NI 81-102 Investment Funds and Related Consequential Amendments which include amendments to:

The amendments are part of Stage 3 of the CSA’s implementation of the point of sale disclosure project. The amendments mandate a CSA risk classification methodology for use by the fund manager for the purpose of determining the investment risk level of conventional mutual funds and exchange traded funds (ETFs) (which are collectively referred to as mutual funds) for disclosure in the Fund Facts document as required under Form 81-101F3 Contents of Fund Facts Document and in the ETF Facts document as required under Form 41-101F4 Information Required in an ETF Facts Document, respectively. On December 8, 2016 the CSA published Mutual Fund Risk Classification Methodology for Use in Fund Facts and ETF Facts and Mandating a Summary Disclosure Document for Exchange-Traded Mutual Funds and its Delivery. Most of the amendments came into force on March 8, 2017.

Amendments effective September 1, 2017 require mutual funds in continuous distribution, the securities of which are listed and traded on an exchange or an alternative trading system, to produce and file a summary disclosure document called “ETF Facts”, which must be made available on the ETF’s or the ETF manager’s website.

The amendments also introduced a new delivery regime. Beginning on December 10, 2018, dealers that receive an order to purchase ETF securities must deliver an ETF Facts to investors within two days of the purchase. Delivery of the prospectus is no longer required, but there is a requirement for the prospectus to be made available to investors upon request, at no cost.

For more information on the amendments see National Instrument 81-106 — Investment Fund Continuous Disclosure (NI 81-106).

CSA Notice of Adoption of a T+2 Settlement Cycle for Conventional Mutual Funds published on August 31, 2017 contained amendments to NI 81-102 and a consequential amendment to National Instrument 81-104 - Commodity Pools to shorten the standard settlement cycle for conventional mutual funds from T+3 to T+2. As indicated in a Notice of Ministerial Approval of Amendments to NI 81-102 Investment Funds and NI 81-104 Commodity Pools published November 9, 2017, the amendments became effective on November 14, 2017.

As announced in a CSA notice published December 20, 2018, amendments to the following rules, as well as corresponding changes to commentaries and companion policies became effective on January 3, 2019:

See National Instrument 81-102 - Investment Funds (NI 81-102).