81-102 Mutual Funds [NI - Rescinded]

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81-102 [NI] May 19, 2011
Published: 2010-12-31
Effective: 2011-01-01
Rescinded / Lapsed: 2012-04-30

Concurrently Published

Document
BCN 2010/43 BCN 2010/43 Implementation of Stage 1 of Point of Sale Disclosure for Mutual Funds [BCN]
81-102CP 81-102CP Mutual Funds [CP - Rescinded]

Table of Contents

PART 1 DEFINITIONS AND APPLICATION
1.1 Definitions
1.2 Application
1.3 Interpretation

PART 2 INVESTMENTS
2.1 Concentration Restriction
2.2 Control Restrictions
2.3 Restrictions Concerning Types of Investments
2.4 Restrictions Concerning Illiquid Assets
2.5 Investments in Other Mutual Funds
2.6 Investment Practices
2.7 Transactions in Specified Derivatives for Hedging and Non-hedging Purposes
2.8 Transactions in Specified Derivatives for Purposes Other than Hedging
2.9 Transactions in Specified Derivatives for Hedging Purposes
2.10 Adviser Requirements
2.11 Commencement of Use of Specified Derivatives by a Mutual Fund
2.12 Securities Loans
2.13 Repurchase Transactions
2.14 Reverse Repurchase Transactions
2.15 Agent for Securities Lending, Repurchase and Reverse Repurchase Transactions
2.16 Controls and Records
2.17 Commencement of Securities Lending, Repurchase and Reverse Repurchase
Transactions by a Mutual Fund

PART 3 NEW MUTUAL FUNDS
3.1 Initial Investment in a New Mutual Fund
3.2 Prohibition Against Distribution
3.3 Prohibition Against Reimbursement of Organization Costs

PART 4 CONFLICTS OF INTEREST
4.1 Prohibited Investments
4.2 Self-Dealing
4.3 Exception
4.4 Liability and Indemnification

PART 5 FUNDAMENTAL CHANGES
5.1 Matters Requiring Securityholder Approval
5.2 Approval of Securityholders
5.3 Circumstances in Which Approval of Securityholders Not Required
5.3.1 Change of Auditor of the Mutual Fund
5.4 Formalities Concerning Meetings of Securityholders
5.5 Approval of Securities Regulatory Authority
5.6 Pre-Approved Reorganizations and Transfers
5.7 Applications
5.8 Matters Requiring Notice
5.9 Relief from Certain Regulatory Requirements
5.10 [Repealed]

PART 6 CUSTODIANSHIP OF PORTFOLIO ASSETS
6.1 General
6.2 Entities Qualified to Act as Custodian or Sub-Custodian for Assets Held in Canada
6.3 Entities Qualified to Act as Sub-Custodian for Assets Held outside Canada
6.4 Contents of Custodian and Sub-Custodian Agreements
6.5 Holding of Portfolio Assets and Payment of Fees
6.6 Standard of Care
6.7 Review and Compliance Reports
6.8 Custodial Provisions relating to Derivatives and Securities Lending, Repurchase and Reverse Repurchase Agreements
6.9 Separate Account for Paying Expenses

PART 7 INCENTIVE FEES
7.1 Incentive Fees
7.2 Multiple Portfolio Advisers

PART 8 CONTRACTUAL PLANS
8.1 Contractual Plans

PART 9 SALE OF SECURITIES OF A MUTUAL FUND
9.1 Transmission and Receipt of Purchase Orders
9.2 Acceptance of Purchase Orders
9.3 Issue Price of Securities
9.4 Delivery of Funds and Settlement

PART 10 REDEMPTION OF SECURITIES OF A MUTUAL FUND
10.1 Requirements for Redemptions
10.2 Transmission and Receipt of Redemption Orders
10.3 Redemption Price of Securities
10.4 Payment of Redemption Price
10.5 Failure to Complete Redemption Order
10.6 Suspension of Redemptions

PART 11 COMMINGLING OF CASH
11.1 Principal Distributors
11.2 Participating Dealers
11.3 Trust Accounts
11.4 Exemption
11.5 Right of Inspection

PART 12 COMPLIANCE REPORTS
12.1 Compliance Reports

PART 13 [Repealed]

PART 14 RECORD DATE
14.1 Record Date

PART 15 SALES COMMUNICATIONS AND PROHIBITED REPRESENTATIONS
15.1 Ability to Make Sales Communications
15.2 Sales Communications - General Requirements
15.3 Prohibited Disclosure in Sales Communications
15.4 Required Disclosure and Warnings in Sales Communications
15.5 Disclosure Regarding Distribution Fees
15.6 Performance Data - General Requirements
15.7 Advertisements
15.8 Performance Measurement Periods Covered by Performance Data
15.9 Changes affecting Performance Data
15.10 Formula for Calculating Standard Performance Data
15.11 Assumptions for Calculating Standard Performance Data
15.12 Sales Communications During the Waiting Period
15.13 Prohibited Representations
15.14 Sales Communication - Multi-Class Mutual Funds

PART 16 [Repealed]

PART 17 [Repealed]

PART 18 SECURITYHOLDER RECORDS
18.1 Maintenance of Records
18.2 Availability of Records

PART 19 EXEMPTIONS AND APPROVALS
19.1 Exemption
19.2 Exemption or Approval under Prior Policy
19.3 Revocation of Exemptions

PART 20 TRANSITIONAL
20.1 Effective Date
20.2 Sales Communications
20.3 Reports to Securityholders
20.4 Mortgage Funds
20.5 Delayed Coming into Force

APPENDIX A - Futures Exchanges for the Purpose of Subsection 2.7(4) - Derivative Counterparty Exposure Limits

APPENDIX B - 1, APPENDIX B-2 AND APPENDIX B-3 - Compliance Reports

APPENDIX C - Provisions contained in Securities Legislation for the Purpose of Subsection 4.1(5) – Prohibited Investments