CSA 91/1 - Advertising by Money Market Mutual Funds That Have Not Offered Their Securities to the Public for a Full Year [CSA Notice - Rescinded]

Published Date:	1991-01-31

The Mutual Fund Committee (the "Committee") of the Canadian Securities Administrators (the "Securities Administrators"0 for some time have been considering proposals (the "Proposed Amendments") to amend section 16 of National Policy No. 39 ("NP 39") to liberalize the current provisions governing the disclosure of performance information in sales communications of mutual funds. At present, section 16.01(a)(iii) of NP 39 prohibits the inclusion of performance information in sales communications of mutual funds that have not offered their securities to the public for a full year. However, the Proposed Amendments, which the Committee anticipates will be published for comment early this year, would permit money market mutual funds to include in their sales communications performance information notwithstanding that the securities of the funds that had not been offered to the public for a full year.

Pending finalization of the Proposed Amendments, the Securities Administrators hereby grant money market mutual funds a waiver of the requirement in section 16.01(a)(iii) of NP 39 that sales communications of mutual funds not include performance information unless the securities of the fund have been offered to the public for a full year. Sales communications of money market mutual funds will nevertheless be subject to the Notice dated October 23, 1990 with respect to the advertisement of yields of money market mutual funds.

This waiver is effective immediately and will cease to be effective when any amendments to section 16 of NP 39 become effective or such earlier date as the Securities Administrators indicate by further notice.