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The CSA has issued a Memorandum of Understanding (the "MOU") relating to the Mutual Reliance Review System (the "MRRS"). The MRRS is an understanding between the Canadian securities regulatory authorities on the principles of mutual reliance and is being implemented by way of the MOU. The general principles of the MRRS are described in the MOU and the different policies and rules that are or will be referred to in Appendix A to the MOU describe the detailed procedures for each of the different categories of filings.
The National Instrument is designed to replace NPS 39 and will regulate all publicly offered investment funds that fall within the definition of "mutual fund" contained in Canadian securities legislation. Accordingly, all publicly offered investment funds that give investors the right to redeem securities on demand at a price based on the net asset value of those securities will be required to comply with the National Instrument. Specialized mutual funds such as labour-sponsored investment funds, mortgage funds and commodity pools will generally be required to comply with the National Instrument and also the applicable securities regulation that is in addition to, or in partial substitution for, the provisions of the National Instrument. The purpose of the Companion Policy is to state the views of the CSA on various matters relating to the National Instrument.
Currently, applications for approvals and exemptions under NPS 39 follow the processes set out in it. These applications have not been accepted under ERA because National Instrument 13-101, "System for Electronic Document Analysis and Retrieval" ("SEDAR"), mandates the filing of applications under NPS 39 on SEDAR and applications under ERA are not filed on SEDAR. However, staff note that in practice the application review process under NPS 39 is quite similar to the application review process under ERA.