We support the CSA’s proposal to strengthen liquidity risk management requirements for investment funds. Investment funds are the most common type of security held by retail investors. Clear, enforceable standards help ensure that investors can access their money when they need it, especially during periods of market stress, and reduce the risk of losses when funds struggle to sell assets quickly.
These safeguards are becoming increasingly important as regulators consider expanding retail access to longer-term or less liquid investments through fund structures. We welcome the CSA’s commitment to aligning its approach with global regulatory standards.
Read the full comment letter here.