M.O. 2024/01 makes amendments under the Securities Act, specifically focused on the Rule Respecting the Implementation of CSA Instruments and Policies, designated as Local Rule 11-802. These amendments involve the repeal of existing regulations, the introduction of new regulations, and the establishment of effective dates for these changes. The document outlines the regulatory framework governing the conduct of mutual funds and derivatives in Canada, particularly in the Yukon Territory.

This rule is essential in ensuring that the implementation of Canadian Securities Administrators (CSA) instruments and policies reflects the latest regulatory requirements. One significant change in this amendment is the repeal of National Instrument 81-104, which focused on Canadian Alternative Mutual Funds. The removal of this instrument suggests a shift in the regulatory framework governing these funds, potentially aiming for more efficient regulations or a reevaluation of how alternative mutual funds are managed and monitored within the financial landscape.

Form 93-1O1F1 is included, addressing the submission to jurisdiction and the appointment of an agent for the service of process. This form is crucial for ensuring that entities engaging in derivative trading have a clear process for legal jurisdiction and representation, thereby enhancing accountability and regulatory oversight. The amendment also introduces Companion Policy 93-1O1CP, which aligns with the new business conduct standards established by Multilateral Instrument 93-101. This policy is designed to provide guidance on the interpretation and application of the new rules, ensuring that market participants understand their obligations under the revised regulatory framework.

The effective dates for the amendments are clearly outlined to allow adequate preparation for market participants. Section 2, which includes the repeal of National Instrument 81-104, becomes effective on January 29, 2024, marking the transition away from the old regulations governing alternative mutual funds. Section 3, concerning the introduction of Multilateral Instrument 93-101 and related forms, will come into effect on September 28, 2024. This staggered approach allows stakeholders time to adjust to the new business conduct standards and regulatory requirements.

In conclusion, M.O. 2024/01 represents a significant update to the regulatory landscape for securities in Canada, particularly in the Yukon. By repealing outdated instruments and introducing new regulations focused on derivatives, the amendment aims to enhance market integrity and investor protection. These changes reflect an ongoing evolution in the regulatory framework, addressing emerging trends and challenges in the financial markets. As the effective dates approach, market participants must prepare for the implementation of these new rules to ensure compliance and maintain the integrity of their operations.

Yukon (MO 2024/01) February 15, 2024