Securities Law

BCN 2002/13 - Publication for Comment of Concept Proposal 81-402 Striking a New Balance: A Framework for Regulating Mutual Funds and Their Managers [BCN - Rescinded]

Published Date: 2002-03-01
Effective Date: 2002-02-28
Related Document(s):

The Canadian Securities Administrators (CSA) are publishing for comment Concept Proposal 81-402 Striking a New Balance: A Framework for Regulating Mutual Funds and Their Managers. 

The concept proposal asks a series of specific questions and invites general comments on all aspects of the proposed regulatory framework. The British Columbia Securities Commission is particularly interested in the following points:

1. What factors should we consider in weighing the costs and benefits of the system of mutual fund governance and manager registration described in the concept proposal? Do you think that the benefits would outweigh the costs? (See Part C of the concept proposal and question #39.)

2. Would the proposal affect large and small fund groups differently? What would the costs and benefits be for different types of fund groups? (See the costs analysis in the background paper to the concept proposal.)

3. Would any of the alternative proposals described in the paper be better than the main proposal? If so, how would the benefits of that alternative compare with its costs? (See question #2 in the concept proposal.)

4. The concept proposal suggests that detailed restrictions on mutual fund investments and related party transactions could be relaxed after adoption of independent governance rules. Do you agree with this aspect of the proposal? Should the CSA consider liberalizing these restrictions independently of the fund governance issue? Would any alternative protections for investors be necessary or appropriate if these changes were made? (See questions 1, 36 and 37 in the concept proposal.)

You should send written submissions to the CSA by June 7, 2002, as requested on page 4 of the Concept Proposal.  

Questions may be referred to:

Christopher J. Birchall
Senior Securities Analyst, Corporate Finance
British Columbia Securities Commission
(604) 899-6722
or (800) 373-6393 (in B.C. and Alberta)

February 28, 2002


Douglas M. Hyndman

This Notice may refer to other documents. These documents can be found at the B.C. Securities Commission public website at in the Commission Documents database or the Historical Documents database.