On December 15, 2022, the CSA also published CSA Staff Notice 81-335 – Investment Fund Settlement Cycles (osc.ca). The Notice includes:
- An expectation that upon the move to a T+1 settlement cycle, where practicable mutual funds should settle primary distributions and redemptions of their securities on T+1 voluntarily.
- No intention to amend sections 9.4 and 10.4 of National Instrument 81-102 Investment Funds to shorten the settlement cycle for primary distributions and redemptions of mutual fund securities.
This approach will assist firms that may encounter operational difficulties for funds that have a significant portion of their portfolio assets that settle at T+2 or longer.