CSA issues additional temporary relief to investment funds and non-investment fund issuers for certain regulatory filing deadlines

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On May 20, 2020, the Canadian Securities Administrators (the “CSA”) released two blanket orders that would provide temporary relief to investment funds and non-investment fund issuers. The temporary relief follows similar orders that were announced on March 23, 2020.

For investment funds and non-investment fund issuers, the blanket relief will provide the following extensions for certain filing, delivery and base shelf prospectus renewal obligations:

Issuer

Extension

For filings and obligations due or required between:

Investment funds

45 days

June 2, 2020 and September 30, 2020

Non-investment funds

60 days

June 2, 2020 and August 31, 2020

To rely on this temporary relief, non-investment fund issuers must issue a news release before the required filing deadline and comply with other conditions in the order issued by their applicable securities regulator.

Investment funds and non-investment fund issuers that have already relied upon the previous temporary relief to extend any filing, delivery and prospectus renewal deadlines that were on or before June 1, 2020 cannot use this temporary relief. For a non-investment fund issuer that has relied on the previous relief but expects it will need an additional extension, the CSA suggests applying for a management cease trade order (an “MCTO”). However, the CSA states securities regulators will likely reduce the usual period of an MCTO to take into account the 45-day extension.

An MCTO restricts certain officers and directors from trading and may be issued by a regulator instead of a failure-to-file cease trade order. Conditions for granting an MCTO are provided in National Policy 12-203 Management Cease Trade Orders (NP 12-203). If an MCTO is issued, the issuer must comply with alternative information guidelines, as provided in NP 12-203, until the required documents are filed.

This blanket relief will be implemented through local blanket orders that will be substantially harmonized across the country.

For any questions regarding this announcement or others from the CSA, please contact your McCarthy Tétrault relationship partner, Patrick Boucher, Wendi Locke or Andrew Parker.

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