CSA NOTICE AND REQUEST FOR COMMENTS
PROPOSED CONSEQUENTIAL AMENDMENTS TO REGISTRATION,
PROSPECTUS AND CONTINUOUS DISCLOSURE RULES
RELATED TO NATIONAL INSTRUMENT 25-101
DESIGNATED RATING ORGANIZATIONS
1.
Introduction
We, the Canadian Securities Administrators (CSA) are publishing for a 90 day comment
period proposed amendments to:
•
Companion Policy 21-101CP Marketplace Operation (21-101CP)
•
National Instrument 31-103 Registration Requirements, Exemptions and Ongoing
Registrant Obligations (NI 31-103)
•
Form 31-103F1 Calculation of Excess Working Capital (31-103F1)
•
Form 33-109F6 Firm Registration (33-109F6)
•
National Instrument 41-101 General Prospectus Requirements (NI 41-101)
•
National Instrument 44-101 Short Form Prospectus Distributions (NI 44-101)
•
Form 44-101F1 Short Form Prospectus (44-101F1)
•
Companion Policy 44-101CP Short Form Prospectus Distributions (44-101CP)
•
National Instrument 44-102 Shelf Distributions (NI 44-102)
•
Companion Policy 44-102CP Shelf Distributions (44-102CP)
•
National Instrument 45-106 Prospectus and Registration Exemptions (NI 45-106)
•
National Instrument 51-102 Continuous Disclosure Obligations (NI 51-102)
•
National Policy 51-201 Disclosure Standards (NP 51-201)
•
National Instrument 81-101 Mutual Fund Prospectus Disclosure (NI 81-101)
•
National Instrument 81-102 Mutual Funds (NI 81-102)
•
Companion Policy 81-102CP Mutual Funds (81-102CP)
•
National Instrument 81-106 Investment Fund Continuous Disclosure (NI 81-106)
(collectively, the DRO Consequential Amendments).
The DRO Consequential Amendments are set out in the following appendices to this
Notice:
•
Appendix A – 21-101CP
•
Appendix B – NI 31-103 and 31-103F1
•
Appendix C – 33-109F6
•
Appendix D – NI 41-101
•
Appendix E – NI 44-101, 44-101F1 and 44-101CP
•
Appendix F – NI 44-102 and 44-102CP
•
Appendix G – NI 45-106
•
Appendix H – NI 51-102
•
Appendix I – NP 51-201
•
Appendix J – NI 81-101
•
Appendix K – NI 81-102 and 81-102CP
•
Appendix L – NI 81-106
2.
Background
On January 27, 2012, the CSA published a notice (the January Notice) regarding the
adoption of National Instrument 25-101 Designated Rating Organizations (NI 25-101),
related consequential amendments and National Policy 11-205 Process for Designation
of Credit Rating Organizations in Multiple Jurisdictions, which came into effect on April
20,
2012.
NI
25-101
imposes
requirements
on
those
credit
rating
agencies
or
organizations (CROs) that wish to have their credit ratings eligible for use in securities
legislation by requiring them to apply to become a “designated rating organization”
(DRO) and adhere to rules concerning conflicts of interest, governance, conduct,
compliance and required filings (the DRO Regime). This regulatory framework is
consistent with international regimes applicable to CROs.
In the January Notice, the CSA indicated that, following the implementation of NI 25-
101 and the application for designation by interested CROs, the CSA would propose to
make the DRO Consequential Amendments in order to implement the DRO Regime.
On April 30, 2012, the CSA announced the designation of DBRS Limited, Fitch, Inc.,
Moody’s Canada Inc., and Standard & Poor’s Rating Services (Canada) as DROs under
applicable
securities
legislation,
as
contemplated
under
NI
25-101
(the
April
Designation Orders). The four rating agencies granted DRO status are in compliance in
all material respects with U.S. federal securities laws applicable to a nationally
recognized statistical rating organization (NRSRO). The April Designation Orders make
each of the DROs subject to regulation under applicable Canadian securities legislation
and provide a six month transition period to fully implement all requirements set out in
NI 25-101. Once they have done so, the CSA expect to issue and announce amended and
restated designation orders under the terms of NI 25-101.
3.
Substance and Purpose of the DRO Consequential Amendments
Many investors and intermediaries rely on credit ratings when making investment
decisions about debt securities and other structured products. Canadian securities
legislation also includes a number of references to credit ratings. Some of these
provisions permit different treatment based on the credit rating. For example, highly rated
short-term debt securities can be distributed under an exemption from registration and
prospectus requirements
1
, can be distributed by short-form prospectus
2
, are “qualified
securities”
3
for mutual funds and are eligible investments for money-market funds
4
.
1
See section 2.35 of NI 45-106.
2
See sections 2.3, 2.4 and 2.6 of NI 44-101.
3
See the definition of “qualified security” in section 1.1 of NI 81-102.
4
See the definition of “money market fund” in section 1.1 of NI 81-102.
These provisions currently include references to “approved rating”, “approved credit
rating”, “approved rating organization” and “approved credit rating organization”.
The DRO Consequential Amendments will replace these existing references to “approved
rating organization”, and “approved credit rating organization” with “designated rating
organization”. Similarly, the terms “approved rating” and “approved credit rating” will be
replaced with “designated rating” and amended to include a rating provided by a DRO
affiliate, another defined term in NI 25-101.
We are also publishing for comment a related consequential amendment to Item 7.9 of
Form 44-101F1 Short Form Prospectus to clarify that the disclosure of an issuer’s
relationship with a CRO is limited to the securities being distributed under a short form
prospectus.
4.
Local Notices and Amendments
Certain jurisdictions are publishing other information required by local securities
legislation in Appendix M to this notice.
5.
Comments
We request your comments on the DRO Consequential Amendments. Please provide
your comments in writing by October 24, 2012. If you are not sending your comments
by email, an electronic file containing the submissions should also be provided (Windows
format, Word).
Please
address
your
submission
to
the
following
Canadian
securities
regulatory
authorities:
British Columbia Securities Commission
Alberta Securities Commission
Saskatchewan Financial Services Commission
Manitoba Securities Commission
Ontario Securities Commission
Autorité des marchés financiers
New Brunswick Securities Commission
Superintendent of Securities, Prince Edward Island
Nova Scotia Securities Commission
Securities Commission of Newfoundland and Labrador
Superintendent of Securities, Yukon Territory
Superintendent of Securities, Northwest Territories
Superintendent of Securities, Nunavut
Please deliver your comments only to the addresses that follow. Your comments will be
distributed to the other participating CSA member jurisdictions.
The Secretary
Ontario Securities Commission
20 Queen Street West
Suite 1900, Box 55
Toronto, Ontario M5H 3S8
Fax: (416) 593-2318
E-mail: comments@osc.gov.on.ca
M
e
Anne-Marie Beaudoin
Corporate Secretary
Autorité des marchés financiers
800, square Victoria, 22
e
étage
C.P. 246, tour de la Bourse
Montréal (Québec) H4Z 1G3
Fax: 514-864-6381
E-mail: consultation-en-cours@lautorite.qc.ca
Please note that comments received will be made publicly available and posted at
www.osc.gov.on.ca and on the websites of certain other securities regulatory authorities.
We cannot keep submissions confidential because securities legislation in certain
provinces requires that a summary of the written comments received during the comment
period be published.
6.
Questions
If you have any questions, please refer them to any of the following:
Frédéric Duguay
Legal Counsel, Corporate Finance
Ontario Securities Commission
416-593-3677
fduguay@osc.gov.on.ca
Katie DeBartolo
Accountant, Corporate Finance
Ontario Securities Commission
416-593-2166
kdebartolo@osc.gov.on.ca
Lucie J. Roy
Senior Policy Advisor
Service de la réglementation
Surintendance aux marchés des valeurs
Autorité des marchés financiers
514-395-0337, ext 4464
lucie.roy@lautorite.qc.ca
Ashlyn D’Aoust
Legal Counsel, Corporate Finance
Alberta Securities Commission
403-355-4347
ashlyn.daoust@asc.ca
Sheryl Thomson
Acting Manager, Legal Services
Corporate Finance
British Columbia Securities Commission
604-899-6778
sthomson@bcsc.bc.ca
July 26, 2012
APPENDIX A
PROPOSED CHANGES TO COMPANION POLICY 21-101CP MARKETPLACE
OPERATION
1.
The changes proposed to Companion Policy 21-101CP Marketplace Operation
are set out in this Appendix.
2.
Subsection 10.1(6) is replaced with the following:
An “investment grade corporate debt security” is a corporate debt security that is
rated by a designated rating organization, or its DRO affiliate, that is at or above
one of the following rating categories or that is at or above a category that
preceded or replaces one of the following rating categories:
Designated Rating
Long Term Debt
Short Term Debt
Organization
DBRS Limited
BBB
R-2
Fitch, Inc.
BBB
F3
Moody’s Canada
Baa
Prime-3
Inc.
Standard & Poor’s
BBB
A-3
Ratings
Services
(Canada)
3.
The changes become effective on ●, 2012.
APPPENDIX B
PROPOSED AMENDMENTS TO NATIONAL INSTRUMENT 31-103
REGISTRATION REQUIREMENTS, EXEMPTIONS AND ONGOING
REGISTRANT OBLIGATIONS
1.
National
Instrument
31-103
Registration
Requirements,
Exemptions
and
Ongoing Registrant Obligations is amended by this Instrument.
2.
Section 8.21 is amended
(a)
in subsection (1), by
(i)
replacing “approved credit rating” with “designated rating”,
(ii)
replacing “approved credit rating organization” with “designated
rating organization”,
(iii)
after the definition of “designated rating organization”, by adding
the following definition:
“DRO affiliate” has the same meaning as in section 1 of National
Instrument 25-101 Designated Rating Organizations;, and
(b)
in subparagraph (2)(b), by
(i)
replacing “an approved credit rating” with “a designated rating”,
and
(ii)
replacing
“an
approved
credit
rating
organization”
with
“a
designated rating organization or its DRO affiliate”.
3.
Schedule 1 of Form 31-103F1 Calculation of Excess Working Capital
(calculating line 9 [market risk]) is amended by replacing “Moody’s Investors
Service, Inc. or Standard & Poor’s Corporation” with “Moody’s Canada Inc. or
its DRO affiliate or Standard & Poor’s Rating Services (Canada) or its DRO
affiliate”.
4.
This Instrument comes into force on ●, 2012.
APPENDIX C
PROPOSED AMENDMENTS TO NATIONAL INSTRUMENT 33-109
REGISTRATION INFORMATION
1.
National Instrument 33-109 Registration Information is amended by this
Instrument.
2.
Form 33-109F6 Firm Registration is amended by replacing, in Schedule 1 of
Form 31-103F1 Calculation of Excess Working Capital (calculating line 9
[market risk]), “Moody’s Investors Service, Inc. or Standard & Poor’s
Corporation” with “Moody’s Canada Inc. or its DRO affiliate or Standard &
Poor’s Rating Services (Canada) or its DRO affiliate”.
3.
These amendments come into force on ●, 2012.
APPENDIX D
PROPOSED AMENDMENTS TO NATIONAL INSTRUMENT 41-101
GENERAL PROSPECTUS REQUIREMENTS
1.
National Instrument 41-101 General Prospectus Requirements is amended by
this Instrument.
2.
Section 1.1 is amended
(a)
by replacing “approved rating organization” with “designated rating
organization”,
(b)
after the definition of “designated foreign jurisdiction”, by adding the
following definition:
“DRO affiliate” has the same meaning as in section 1 of NI 25-101;, and
(c)
after the definition of “NI 14-101”, by adding the following definition:
“NI 25-101” means National Instrument 25-101 Designated Rating
Organizations;.
3.
Subsection 7.2(2) is amended by replacing “approved rating organization” with
“designated rating organization or its DRO affiliate”, and
4.
Subsection 10.1(4) is amended by replacing “an approved rating organization”
with “a designated rating organization or its DRO affiliate”.
5.
This Instrument comes into force on ●, 2012.
APPENDIX E
PROPOSED AMENDMENTS TO NATIONAL INSTRUMENT 44-101
SHORT FORM PROPSECTUS DISTRIBUTIONS AND COMPANION POLICY
Schedule E-1
Proposed Amendments to
National Instrument 44-101 Short Form Prospectus Distributions
1.
National Instrument 44-101 Short Form Prospectus Distributions is amended
by this Instrument.
2.
Section 1.1 is amended
(a)
by replacing the definition of “approved rating” with the following:
“designated rating” means, for a security, a rating issued by a designated rating
organization, or its DRO affiliate, that is at or above one of the following rating
categories or that is at or above a category that replaces one of the following
rating categories:
Designated Rating
Long Term Debt
Short Term Debt
Preferred Shares
Organization
DBRS Limited
BBB
R-2
Pfd-3
Fitch, Inc.
BBB
F3
BBB
Moody’s Canada
Baa
Prime-3
“baaa”
Inc.
Standard & Poor’s
BBB
A-3
P-3
Ratings Services
(Canada)
(b)
in the definition of “cash equivalent”, by
(i)
replacing “an approved rating” wherever it occurs with “a
designated rating”, and
(ii)
replacing “approved rating organization” with “designated rating
organization or its DRO affiliate”, and
(c)
after the definition of “current annual financial statements”, by adding
the following definition:
“DRO affiliate” has the same meaning as in section 1 of National
Instrument 25-101 Designated Rating Organizations;.
3.
Section 2.3 is amended
(a)
in the title, by replacing “Approved Rating” with “Designated Rating”,
(b)
in paragraph (1)(e), by
(i)
replacing “an approved rating” wherever it occurs with “a
designated rating”,
(ii)
in subparagraph (e)(ii),
(A)
replacing
“an
approved
rating
organization”
with
“a
designated rating organization or its DRO affiliate”,
(B)
replacing “approved rating” with “designated rating”, and
(iii)
in subparagraph (e)(iii), replacing “approved rating organization”
with “designated rating organization or its DRO affiliate”.
4.
Subsection 2.4(1) is amended by
(a)
replacing “an approved rating” wherever it occurs with “a designated
rating”,
(b)
replacing “an approved rating organization” wherever it occurs with “a
designated rating organization or its DRO affiliate”,
(c)
replacing “any approved rating organization” wherever it occurs with
“any designated rating organization or its DRO affiliate”,
(d)
in clause (c)(i)(B), replacing “approved rating” with “designated rating”,
and
(e)
in clause(c)(ii)(B), replacing “approved rating” with “designated rating”.
5.
Subsection 2.6(1) is amended by
(a)
replacing “an approved rating” wherever it occurs with “a designated
rating”,
(b)
in subparagraph (c)(ii),
(i)
replacing “an approved rating organization” with “a designated
rating organization or its DRO affiliate”,
(ii)
replacing “approved rating” with “designated rating”, and
(c)
in subparagraph (c)(iii), replacing “approved rating organization” with
“designated rating organization or its DRO affiliate”.
6.
Item 7.9 of Form 44-101F1 is amended by replacing “securities of the issuer that
are outstanding, or will be outstanding,” with “the securities being distributed”.
7.
This Instrument comes into force on ●, 2012.
Schedule E-2
Proposed Changes to
Companion Policy 44-101CP Short Form Prospectus Distributions
1.
The changes proposed to Companion Policy 44-101CP Short Form Prospectus
Distributions are set out in this Schedule.
2.
Subsection 1.7(1) is changed
(a)
in the title, by replacing “Approved rating” with “Designated rating”,
(b)
by replacing “an approved rating” wherever it occurs with “a designated
rating”, and
(c)
by replacing “rating agency” wherever it occurs with “designated rating
organization or its DRO affiliate”.
3.
Section 2.2 is changed by replacing “approved rating” with “designated rating”.
4.
Section 2.4 is changed by
(a)
replacing “an approved rating” wherever it occurs with “a designated
rating”, and
(b)
replacing
“approved
rating
organization”
with
“designated
rating
organization or its DRO affiliate”.
5.
The changes become effective on ●, 2012.
APPENDIX F
PROPOSED AMENDMENTS TO NATIONAL INSTRUMENT 44-102
SHELF DISTRIBUTIONS AND COMPANION POLICY
Schedule F-1
Proposed Amendments to
National Instrument 44-102 Shelf Distributions
1.
National Instrument 44-102 Shelf Distributions is amended by this Instrument.
2.
Section 2.3 is amended
(a)
in subsection (1), by
(i)
replacing
“approved
rating
non-convertible
securities”
with
“designated rating non-convertible securities”,
(ii)
replacing “an approved rating” wherever it occurs with “a
designated rating”, and
(iii)
replacing “approved rating organization” with “designated rating
organization or its DRO affiliate”.
(b)
in subsection (2), by
(i)
replacing “an approved rating” wherever it occurs with “a
designated rating”, and
(ii)
replacing “approved rating organization” with “designated rating
organization or its DRO affiliate”.
(c)
in subsection (3), by
(i)
replacing “approved rating” wherever it occurs with “designated
rating”,
(ii)
replacing “an approved rating” wherever it occurs with “a
designated rating”,
(iii)
in clause (b)(iv)(B), replacing “an approved rating organization”
wherever it occurs with “a designated rating organization or its
DRO affiliate”, and
(iv)
in clause (b)(iv)(C), replacing “approved rating organization”
wherever it occurs with “designated rating organization or its
DRO affiliate”.
3.
Subsection 2.4(3) is amended by
(a)
replacing “approved rating” wherever it occurs with “designated rating”,
(b)
replacing “an approved rating” wherever it occurs with “a designated
rating”,
(c)
replacing “an approved rating organization” wherever it occurs with “a
designated rating organization or its DRO affiliate”, and
(d)
replacing “any approved rating organization” wherever it occurs with
“any designated rating organization or its DRO affiliate”.
4.
Section 2.6 is amended by
(a)
replacing “approved rating” wherever it occurs with “designated rating”,
(b)
replacing “an approved rating” wherever it occurs with “a designated
rating”,
(c)
replacing “an approved rating organization” wherever it occurs with “a
designated rating organization or its DRO affiliate”, and
(d)
replacing “any approved rating organization” wherever it occurs with
“any designated rating organization or its DRO affiliate”.
5.
This Instrument comes into force on ●, 2012.
Schedule F-2
Proposed Changes to
Companion Policy 44-102CP Shelf Distributions
1.
The changes proposed to Companion Policy 44-102CP Shelf Distributions are
set out in this Schedule.
2.
Subsection 2.6(2) is changed by replacing “approved rating organizations” with
“designated rating organizations or their DRO affiliates”.
3.
The changes become effective on ●, 2012.
APPENDIX G
PROPOSED AMENDMENTS TO NATIONAL INSTRUMENT 45-106
PROSPECTUS AND REGISTRATION EXEMPTIONS
1.
National
Instrument
45-106
Prospectus
and
Registration
Exemptions
is
amended by this Instrument.
2.
Section 1.1 is amended
(a)
by replacing “approved credit rating” with “designated rating”,
(b)
by replacing “approved credit rating organization” with “designated
rating organization”, and
(c)
after the definition of “director”, by adding the following definition:
“DRO affiliate” has the same meaning as in section 1 of National
Instrument 25-101 Designated Rating Organizations;.
3.
Paragraph 2.34(2)(b) is amended
(a)
by replacing “an approved credit rating” with “a designated rating”, and
(b)
by replacing “an approved credit rating organization” with “a designated
rating organization or its DRO affiliate”.
4.
Subsection 2.35(b) is amended
(a)
by replacing “an approved credit rating” with “a designated rating”, and
(b)
by replacing “an approved credit rating organization” with “a designated
rating organization or its DRO affiliate”.
5.
Paragraph 3.34(2)(b) is amended
(a)
by replacing “an approved credit rating” with “a designated rating”, and
(b)
by replacing “an approved credit rating organization” with “a designated
rating organization or its DRO affiliate”.
6.
Subsection 3.35(b) is amended
(a)
by replacing “an approved credit rating” with “a designated rating”, and
(b)
by replacing “an approved credit rating organization” with “a designated
rating organization or its DRO affiliate”.
7.
This Instrument comes into force on ●, 2012.
APPENDIX H
PROPOSED AMENDMENTS TO NATIONAL INSTRUMENT 51-102
CONTINUOUS DISCLOSURE OBLIGATIONS
1.
National Instrument 51-102 Continuous Disclosure Obligations is amended by
this Instrument.
2.
Section 1.1 is amended
(a)
by replacing the definition of “approved rating organization” with the
following:
“designated rating organization” means
(a) each of DBRS Limited, Fitch, Inc., Moody’s Canada Inc., and
Standard & Poor’s Ratings Services (Canada), including their DRO
affiliates; or
(b) any other credit rating organization that has been designated under
securities legislation;, and
(b)
after the definition of “date of transition”, by adding the following
definition:
“DRO affiliate” has the same meaning as in section 1 of National
Instrument 25-101 Designated Rating Organizations;.
3.
This Instrument comes into force on ●, 2012.
APPENDIX I
PROPOSED CHANGES TO NATIONAL POLICY 51-201
DISCLOSURE STANDARDS
1.
The changes proposed to National Policy 51-201 Disclosure Standards are set
out in this Appendix.
2.
Subsection 3.3(7) is changed by replacing “approved rating agencies” with
“designated rating organizations”.
3.
Footnote 19 is changed by replacing “approved rating” with “designated rating”.
4.
The changes become effective on ●, 2012.
APPENDIX J
PROPOSED AMENDMENTS TO NATIONAL INSTRUMENT 81-101
MUTUAL FUND PROSPECTUS DISCLOSURE
1.
National Instrument 81-101 Mutual Fund Prospectus Disclosure is amended by
this Instrument.
2.
Subsection 2.6(4) is amended by replacing “an approved rating organization”
with “a designated rating organization or its DRO affiliate”.
3.
This Instrument comes into force on ●, 2012.
APPENDIX K
PROPOSED AMENDMENTS TO NATIONAL INSTRUMENT 81-102
MUTUAL FUNDS AND COMPANION POLICY
Schedule K-1
Proposed Amendments to
National Instrument 81-102 Mutual Funds
1.
National Instrument 81-102 Mutual Funds is amended by this Instrument.
2.
Section 1.1 is amended
(a)
by
replacing
the
definition
of
“approved
credit
rating”
with
the
following:
“designated rating” means, for a security or instrument, a rating issued by a
designated rating organization, or its DRO affiliate, that is at or above one of the
following rating categories, or that is at or above a category that replaces one of
the following rating categories, if
(a) there has been no announcement by the designated rating organization
or its DRO affiliate of which the mutual fund or its manager is or
reasonably should be aware that the rating of the security or instrument
to which the designated rating was given may be down-graded to a
rating category that would not be a designated rating, and
(b) no designated rating organization or any of its DRO affiliates has rated
the security or instrument in a rating category that is not a designated
rating:
Designated Rating
Commercial
Long Term Debt
Organization
Paper/ Short Term
Debt
DBRS Limited
R-1 (low)
A
Fitch, Inc.
F1
A
Moody’s Canada
P-1
A2
Inc.
Standard & Poor’s
A-1 (Low)
A
Ratings Services
(Canada)
,
(b)
by replacing the definition of “approved credit rating organization” with
the following:
“designated rating organization” means
(a) each of DBRS Limited, Fitch, Inc., Moody’s Canada Inc., and
Standard & Poor’s Ratings Services (Canada), including their DRO
affiliates; or
(b) any other credit rating organization that has been designated under
securities legislation;,
(c)
in the definition of “cash cover”, by replacing “an approved credit
rating” with “a designated rating”,
(d)
in the definition of “cash equivalent”, by
(i)
replacing “an approved credit rating” wherever it occurs with “a
designated rating”, and
(ii)
replacing
“an
approved
credit
rating
organization”
with
“a
designated rating organization or its DRO affiliate”,
(e)
after the definition of “delta”, by adding the following definition:
“DRO affiliate” has the same meaning as in section 1 of National
Instrument 25-101 Designated Rating Organizations;,
(f)
in the definition of “floating rate evidence of indebtedness”, by replacing
“an approved credit rating” wherever it occurs with “a designated rating”,
(g)
in the definition of “money market fund”, by replacing “an approved
credit rating” with “a designated rating”,
(h)
in the definition of “qualified security”, by
(i)
replacing “an approved credit rating” wherever it occurs with “a
designated rating”, and
(ii)
replacing
“an
approved
credit
rating
organization”
with
“a
designated rating organization or its DRO affiliate”.
3.
Section 2.7 is amended
(a)
in subsection (1), by replacing “an approved credit rating” wherever
it occurs with “a designated rating”, and
(b)
in
subsection
(2),
by
replacing
“approved
credit
rating”
with
“designated rating”.
4.
Subparagraph 2.12(1)6.(d) is amended
(a)
by replacing “an approved credit rating organization” with “a designated
rating organization or its DRO affiliate”, and
(b)
by replacing “an approved credit rating” with “a designated rating”.
5.
Subparagraph 2.18(1)(a)(iii) is amended by replacing “an approved credit
rating” with “a designated rating”.
6.
Paragraph 4.1(4)(b) is amended
(a)
by replacing “an approved rating” with “a designated rating”, and
(b)
by replacing “an approved credit rating organization” with “a designated
rating organization or its DRO affiliate”.
7.
Subsection 4.1(4.1) is amended by replacing “approved rating” with “designated
rating”.
8.
Subsection 15.3(5) is amended
(a)
in paragraph (a), by replacing “an approved credit rating organization”
with “a designated rating organization or its DRO affiliate”, and
(b)
in
paragraphs
(b)
and
(c),
by
replacing
“approved
credit
rating
organization” with “designated rating organization or any of its DRO
affiliates”.
9.
This Instrument comes into force on ●, 2012.
Schedule K-2
Proposed Changes to
Companion Policy 81-102CP Mutual Funds
1.
The changes proposed to Companion Policy 81-102CP Mutual Funds are set
out in this Schedule.
2.
Subsection 3.1(4) is changed by
(a) replacing “approved credit rating organizations” wherever it appears with
“designated rating organizations or their DRO affiliates” and,
(b) replacing “Standard & Poor’s” wherever it appears with “Standard & Poor’s
Rating Services (Canada) or its DRO affiliate”.
3.
The changes become effective on ●, 2012.
APPENDIX L
PROPOSED AMENDMENTS TO NATIONAL INSTRUMENT 81-106
INVESTMENT FUND CONTINOUS DISCLOSURE
1.
National
Instrument
81-106
Investment
Fund
Continuous
Disclosure
is
amended by this Instrument.
2.
Paragraph 3.5(6)(d) is amended by replacing “approved credit rating” with
“designated rating”.
3.
This Instrument comes into force on ●, 2012.
You are being directed to the most recent version of the statute which may not be the version considered at the time of the judgment.