What is National Instrument 81-105 concerned with?

What is National Instrument 81-105 concerned with?

• A. Equity trading regulations
• B. Mutual Funds Practices
• C. Debt security guidelines
• D. Compliance training for dealers

Answer: (B)

National Instrument 81-105 pertains specifically to Mutual Funds Practices, focusing on the regulatory framework and practices related to mutual funds in Canada. It outlines the guidelines for the sales practices, advertising, and disclosure requirements that mutual fund dealers and representatives must adhere to. The goal of this regulation is to protect investors and ensure that they receive clear and informative information about mutual fund investment products.

This instrument also addresses issues related to fee structures and conflicts of interest that may arise in the sale of mutual funds, ensuring that the practices employed by dealers are fair and transparent. By having a specific regulation dedicated to mutual funds, National Instrument 81-105 aids in maintaining the integrity of the mutual fund market and facilitates investor confidence in these investment vehicles.