Notice

NI 81-106 Investment Fund Continuous Disclosure comes into force on June 1, 2005

 The Securities Commission (Adoption of National Instruments) Amendment Regulations, 2005 No. 4 come into force on June 1, 2005.  The regulations adopt National Instrument 81-106 Investment Fund Continuous Disclosure (“NI 81-106”) and consequential amendments to other  related instruments.

 NI 81-106 sets out the obligations of investment funds with respect to: 

·         financial statements,

·         management reports of fund performance,

·         delivery obligations,

·         proxy voting disclosure,

·         annual information forms (AIFs) for investment funds that do not have a current prospectus,

·         material change reporting,

·         information circulars,

·         proxies and proxy solicitation, and

·         certain other continuous disclosure (CD) related matters.

NI 81-106 harmonizes continuous disclosure requirements for investment funds among Canadian jurisdictions and replaces most existing local continuous disclosure  requirements. 

The Commission regulations also make consequential amendments to the following instruments: 

·         National Instrument 81-101 Mutual Fund Prospectus Disclosure, Form 81-101F1 Contents of Simplified Prospectus, Form 81-101F2 Contents of Annual Information Form, and Companion Policy 81-101CP Mutual Fund Prospectus Disclosure;

·         National Instrument 81-102 Mutual Funds and Companion Policy 81-102CP Mutual Funds;

·         National Instrument 13-101 System For Electronic Document Analysis and Retrieval (SEDAR);

·         National Instrument 81-104 Commodity Pools;

·         National Instrument 51-102 Continuous Disclosure Obligations;

·         National Instrument 52-107 Acceptable Accounting Principles, Auditing Standards and Reporting Currency; and

·         National Instrument 71-102 Continuous Disclosure and Other Exemptions Relating to Foreign Issuers;

 The regulations also revoke National Instrument 54-102 Interim Financial Statement & Report Exemption.

Implementation
The continuous disclosure requirements in Parts XIV and XV of The Securities Act, 1988 are redundant now that NI 51-102 Continuous Disclosure Requirements and NI 81-106 Investment Fund Continuous Disclosure Requirements are in force. 

Sections 10 and 12 of The Securities Amendment Act, 2004 revoke the provisions in Parts XIV and XV of The Securities Act, 1988.  These revocation provisions will not be proclaimed in force until NI 81-106 in place and the transition period under NI 81-106 in complete on January 29, 2006.   

In the meantime GRO 81-801 Implementing National Instrument 81-106 Investment Fund Continuous Disclosure provides that Parts XIV and XV of The Securities Act, 1988 do not apply to investment funds who comply with equivalent provisions of NI 81-106. 

 Dated June 1, 2005 

Contact:

Barbara Shourounis
Director
Securities Division
Saskatchewan Financial Services Commission
(306) 787-5842
bshourounis@sfsc.gov.sk.ca