Canadian securities regulators are giving the industry another couple of months to consider a series of proposed reforms designed to close the regulatory gap between closed-end funds and traditional mutual funds.
The comment period for the latest set of proposals from the Canadian Securities Administrators (CSA) as part of its ongoing effort to modernize the mutual fund product rules was due to expire Tuesday, June 25. However, the CSA said that it is extending the comment period until August 23.
CSA aims to modernize fund rules
In a notice, the CSA says that it has received feedback observing that the proposals represent fundamental changes to the regulatory framework for closed-end funds, and this industry is asking for additional time to “formulate a constructive response”.
As a result, the CSA says it’s “taking the exceptional step” of extending the comment period.
It also notes that, as it plans to finalize certain aspects of the proposals before others, it’s specifically seeking comments on the issues that it intends to deal with first, such as the measures addressing closed-end funds. Proposed amendments to create a more comprehensive framework for alternative funds, among other things, are expected to follow in the second stage of this initiative.