Toronto - The Canadian Securities Administrators (CSA) today published CSA Staff Notice 81-322, which provides an update on the investment funds modernization project and seeks feedback on the next phase of this project.

The Notice follows on proposed amendments to National Instrument 81-102 Mutual Funds, published by the CSA on June 25, 2010, which represent the first phase of the modernization project. Those initial proposals aim to update the regulatory requirements for mutual funds to keep pace with market and product developments, and introduce additional requirements for money market funds.

In the next phase of the project, the CSA is proposing to implement certain key restrictions and operational requirements for non-redeemable investment funds (also referred to as ?closed-end funds'), consistent with similar requirements for mutual funds.

"Achieving consistent, fair and functional investment fund product regulation that effectively protects all retail fund investors is a key consideration of this modernization initiative," said Bill Rice, Chair of the CSA and Chair and CEO of the Alberta Securities Commission. "We encourage investors and marketplace participants to provide us with feedback on these issues as we proceed with this important project."

The CSA is seeking specific input from retail investors and market participants on its proposed approach for this second phase of the project. The Notice and Request for Comment is available on various CSA member websites. The comment period is open until Monday, July 25, 2011. The CSA expects to publish for comment rule proposals relating to this next phase in the spring of 2012.

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

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For more information:

Richard Gilhooley
British Columbia Securities Commission
604-899-6713

Mark Dickey
Alberta Securities
403-297-4481

Sylvain Théberge
Autorité des marchés financiers
514-940-2176

Carolyn Shaw-Rimmington
Commission des valeurs mobilières de l'Ontario
416-593-2361

Ainsley Cunningham
Commission des valeurs mobilières
du Manitoba
204-945-4733

Wendy Connors-Beckett
Commission des valeurs mobilières
du Nouveau-Brunswick
506-643-7745

Natalie MacLellan
Nova Scotia Securities Commission
902-424-8586

Jennifer Anderson
Saskatchewan Financial Services Commission
306-798-4160

Janice Callbeck
PEI Securities Office
Office of the Attorney General
902-368-6288

Doug Connolly
Financial Services Regulation Div.
Terre-Neuve-et-Labrador
709-729-2594

Graham Lang
Registraire des valeurs mobilières
Yukon
867-667-5466

Louis Arki
Bureau des valeurs mobilières
Nunavut
867-975-6587

Donn MacDougall
Bureau des valeurs mobilières
Territoires du Nord-Ouest
867-920-8984