Exchange-traded fund (ETF) managers are reminded that, as of September 1, 2017, they will be required to file an "ETF Facts" document in conjunction with the filing of any ETF prospectus.
Similar to "Fund Facts" for conventional mutual funds, "ETF Facts" are summary disclosure documents for ETFs. Amendments to National Instrument 41-101 General Prospectus Requirements came into force on March 8, 2017 (Amendments) and established the regime and content requirements under which ETF Facts must be produced and delivered. The Amendments also serve to replace the disclosure regime that has previously been in place for ETFs. Such previous disclosure regime required ETF managers to obtain exemptive relief and to produce, for delivery through selling dealers, an ETF "Summary Document". Delivery by a dealer of a Summary Document, and now ETF Facts, to a purchaser of an ETF security within required time frames satisfies the prospectus delivery requirement under applicable securities legislation.
Pursuant to the Amendments, a staged transition was established for the implementation of the new disclosure regime using ETF Facts. Under the transition rules, as of September 1, 2017, ETF managers may no longer utilize Summary Documents and must file ETF Facts in connection with the filing of any new or renewal prospectus. The last date on the transition calendar is November 12, 2018 – as of such date, all ETFs that have not yet filed ETF Facts must do so.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.