Toronto – The Canadian Securities Administrators (CSA) today published for comment amendments that would help mutual funds that voluntarily shorten their trade settlement cycle from two trading days to one (T+1).
The proposals are intended to complement the anticipated shift to T+1 in Canada by accommodating a range of settlement cycles for mutual funds, including those that make this change. The amendments clarify payment dates for transactions and the timeframe for forced redemption of securities for non-payment. In particular, for funds moving to T+1, the timeframe for forced redemption of securities for non-payment has changed from three days to two days after the pricing date.
The 90-day comment period closes on January 17, 2024 and the CSA Notice and Request for Comment on Proposed Amendments to National Instrument 81-102 Investment Funds can be found on CSA members' websites.
The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.
For media inquiries, please contact:
Ilana Kelemen
Canadian Securities Administrators
media@acvm-csa.ca
Crystal Jongeward
Ontario Securities Commission
media_inquiries@osc.gov.on.ca
For investor inquiries, please contact your local securities regulator.