81-107 - Independent Review Committee for Mutual Funds [Proposed NI - Lapsed]
| Published Date: | 2004-01-09 |
|---|---|
| Rescinded Date: | 2005-05-27 |
| Note to reader
This Instrument will be a National Instrument. It will contain both legally binding rules and guidance on the application of those rules. |
Table of Contents
Part 1 Definitions and Application
1.1 Definitions
1.2 Mutual funds subject to Instrument
1.3 Multiple class mutual funds
Part 2 Independent Review Committee
2.1 Independent review committee for mutual funds
2.2 Initial appointment
2.3 Composition, term of office and vacancies
2.4 Independence
2.5 Responsibilities
2.6 Standard of care
2.7 Authority
2.8 Liability
2.9 Proceedings
2.10 Ceasing to be a member
2.11 Disclosure
Part 3 Matters referred to the independent review committee
3.1 Conflicts of interest
3.2 Changes to the mutual fund
3.3 Inter-fund trades
3.4 Supporting Information
Part 4 Exemptions
4.1 Exemption
4.2 Revocations of exemptions, waivers or approvals
Part 5 Effective Date
5.1 Effective date
Introduction
This National Instrument (the Instrument) is designed to promote investor protection inmutual funds while fostering market efficiency. It requires all publicly offered mutualfunds to have an independent committee charged with reviewing any conflicts of interestthat may arise out of the management of the funds and making recommendations to themanager as to how these conflicts may be fairly resolved.
This Instrument contains both rules and commentary on those rules. Each securitiesadministrator in Canada has made the rules contained here under authority granted bythe securities legislation of the applicable jurisdiction. The rules have the force of law ineach province and territory of Canada.
Each securities administrator has also adopted the commentary on the rules as policies.Commentary may explain the implications of a rule, offer examples or indicatedifferent ways to comply with a rule. It may expand on a particular subject without beingexhaustive. Commentary is not legally binding, but it does reflect the views of theCanadian securities regulatory authorities. Commentary is labelled as such and it alwaysappears in italic type.
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