Practical commentary on securities law, exempt market compliance, fund formation, investor reporting, and private capital markets.
Investment fund manager registration depends on substance rather than titles. Determining whether registration is required involves identifying whether the vehicle is an investment fund, who directs its business, operations and affairs, whether there is a sufficient territorial connection to the applicable Canadian jurisdiction, and whether any registration exemption applies.
Redemption rights must be aligned with the liquidity profile of a private investment fund. This article explains how Ontario fund sponsors should structure, draft, disclose and administer redemption provisions, including lock-up periods, notice requirements, valuation, redemption gates, suspension rights and liquidity risk management, while meeting regulatory expectations.