Investor Presentaiton
The auditor is an independent accounting firm retained by the management company to
audit the fund's financial statements once a year.
2.3. The regulatory framework
2.3.1 Current regulations
Mutual fund regulation in Canada is highly harmonized among the provinces and territories.
In order to allow the issuers to conduct business while at the same time complying with
regulations, the Canadian Securities Administrators (CSA) are responsible for ensuring that
document filing requirements have been met under the Continuous Disclosure Review
Programme (CDRP). The CSA also reviews requests for exemptions from applicable
regulations and renews annual short-form prospectus visas.
Additionally, since mutual funds can be distributed in more than one province, they must
comply with the pertinent legislation of each of these provinces. The fund manager's
headquarters address determines which securities administrator has principal authority over
the fund.
Mutual fund regulation in Québec is comparable to that which prevails elsewhere in Canada.
It falls under the aegis of the province's Autorité des marchés financiers (AMF), which
regulates the entire financial services sector.
The Autorité enforces two major laws governing the mutual fund sector:
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The Québec Securities Act, which provides for two regulatory bodies covering the issuers
and distributors working in the securities markets.
Québec's Act respecting the distribution of financial products and services, which more
specifically concerns the work of sales reps involved in the distribution of financial
products and services such as mutual funds.
Québec's Act respecting the Autorité des marchés financiers stipulates that the Autorité can
delegate some of its functions and powers to outside bodies. Such bodies are referred to as
self-regulating bodies (SRB). The self-regulation model draws on the industry's expertise
Consultation paper
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