Toronto - The Canadian Securities Administrators (CSA) announced today the completion of the first phase of its "Modernization Project", which seeks to update the product regulation of publicly offered investment funds.

The purpose of the Project is to modernize investment fund regulation, making it more effective and relevant in today's more diverse and increasingly innovative retail marketplace.

Specifically, the amendments introduced in the first phase recognize the proliferation of Exchange Traded Funds (ETFs) and streamline their access to the market by eliminating the need for them to apply for regulatory exemptions. This will reduce regulatory costs, which is also expected to benefit investors. The amendments are also designed to enhance the resilience of money market funds to certain short-term market risks, by introducing new liquidity requirements and term restrictions.

"By modernizing these important investment fund rules, we are responding to the rapidly evolving investment fund landscape, as well as maintaining consistency with global standards," said Bill Rice, Chair of the CSA, and Chair and Chief Executive Officer of the Alberta Securities Commission.

Subject to ministerial approval, the amendments will come into force April 30, 2012. The new requirements for money market funds will come into force following a transition period.

To view the amended rules, please refer to the CSA Notice on National Instrument 81-102 Mutual Funds, which is available on the websites of various CSA members.

The CSA, the council of the securities regulators of Canada's provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.

- 30 -

 For more information:

Carolyn Shaw-Rimmington
Commission des valeurs mobilières de l'Ontario

Mark Dickey
Alberta Securities Commission

Sylvain Théberge
Autorité des marchés financiers

Richard Gilhooley
British Columbia Securities Commission

Ainsley Cunningham
Commission des valeurs mobilières du Manitoba

Wendy Connors-Beckett
Commission des valeurs mobilières du Nouveau-Brunswick

Shirley Lee
Nova Scotia Securities Commission

Jennifer Anderson
Saskatchewan Financial Services Commission

Janice Callbeck
Securities Office
Office of the Attorney General

Doug Connolly
Financial Services Regulation Div

Helena Hrubesova
Registraire des valeurs mobilières

Louis Arki
Bureau des valeurs mobilières

Donn MacDougall
Bureau des valeurs mobilières
Territoires du Nord-Ouest