Canada’s securities regulators have adopted new rules standardizing how investment fund managers disclose dealings involving potential conflicts of interest, including related‑party transactions. Under the changes, investment fund managers must prepare an annual report on related‑party transactions, which will be included as an appendix to the Independent Review Committee’s (IRC) annual report to securityholders.
Related‑party transactions occur when investment funds enter into transactions with their affiliates, their managers, or entities related to their managers. These transactions are not inherently improper, but they can create incentives that favour managers or related parties rather than investors. Clear and accessible disclosure can help investors understand how these conflicts are identified, reviewed, and managed.
The new requirements come into force on April 22, 2026. Most funds have transition relief until January 1, 2027 to comply, though some may choose to adopt the changes earlier. Investors should watch for the new appendix when they receive their fund’s IRC annual report, as it will bring key conflict‑of‑interest information together in one place.