Order number V-1.1-2024-11 of the Minister of Finance outlines a regulatory amendment to Regulation 81-102 concerning Investment Funds under the Securities Act (chapter V-1.1). This amendment, enacted by the Autorité des marchés financiers (AMF), aims to improve the existing regulations governing investment funds in Québec. The regulatory framework is grounded in the provisions of the Securities Act, specifically sections 331.1 and 331.2, which empower the AMF to enact regulations related to investment funds. Prior to the approval of any new regulations, they must be published for a minimum of 30 days, allowing stakeholders the opportunity to provide feedback, thus ensuring transparency and engagement throughout the regulatory process.

The Autorité des marchés financiers is a self-funding government agency responsible for financial regulation in the province of Quebec. It regulates the province’s financial markets and provides assistance to consumers of financial products and services.

Originally established on May 22, 2001, under decision no. 2001-C-0209, Regulation 81-102 required amendments due to evolving market conditions, technological advancements, and the need to address current investment practices. The draft amendment to Regulation 81-102 was publicly consulted in the Bulletin de l’Autorité des marchés financiers on October 19, 2023, reflecting a commitment to gather stakeholder input before finalizing the changes.

The key changes outlined in the amendment focus on the definitions and procedures related to the “reference settlement date,” a critical term in the regulation. Specifically, a new definition was introduced in Section 9.4, clarifying that the reference settlement date is the earlier of two conditions: the business day determined by the mutual fund, which must be communicated in writing to the principal distributor or participating dealer, or the second business day following the pricing date. Additionally, terms in paragraphs (1) and (2) that previously referred to the “second business day after the pricing date” have been replaced with the newly defined “reference settlement date,” improving clarity and ensuring consistent terminology throughout the regulation. In paragraph (4), further adjustments were made to standardize language regarding settlement dates, specifying that the “third business day after the pricing date” will now be referred to as the “next business day after the reference settlement date,” thereby refining the settlement processes for mutual funds.

By updating terminology and procedural definitions, the regulation seeks to streamline mutual fund processes and improve compliance for stakeholders. This amendment not only aligns with current market practices but also strengthens the regulatory framework governing investment funds, ultimately fostering greater efficiency and transparency in financial markets.

Quebec (MO 2024-11) July 31, 2024