Investment Funds
Sales Communications
Non-Conventional Investment Funds
The sales communications of a publicly-offered investment fund that is not a mutual fund must comply with the Securities Act (Ontario) and Part 13 of National Instrument 41-101 General Prospectus Requirements (NI 41-101).Part 13 sets out what must be included in a notice, circular, advertisement, letter or other communication used in connection with a prospectus offering during the waiting period, and after the issue of the final receipt. It also limits the information that can be provided in an advertisement during the waiting period.
Mutual Funds
The sales communications of a publicly-offered mutual fund must comply with the Securities Act (Ontario) and Part 15 of National Instrument 81-102 Mutual Funds (NI 81-102). Non-conventional mutual funds that file a prospectus under NI 41-101 must also comply with Part 13 of NI 41-101.Similar to Part 13 of NI 41-101, Part 15 of NI 81-102 states what must be included in a sales communication used in connection with a prospectus offering of mutual fund securities during the waiting period and after the issue of a receipt for the final prospectus. It also limits the information that can be provided in a sales communication of a mutual fund during the waiting period.
Part 15 also contains other requirements for sales communications used in connection with the distribution of mutual funds under a prospectus, such as provisions prescribing the presentation and calculation of performance data for standard measurement periods and disclosure regarding distribution fees.
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