Set Up an Investment Fund in Canada

Updated on Monday 01st October 2018

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The financial industry is very developed in Canada, and one of the most successful branches of this industry is the investment funds sector. Many international financial companies set up investment funds in Canada, however, young entrepreneurs are also attracted by opportunities offered by the investment funds market in this country.

Below, our Canadian company formation consultants explain the types of investment funds available for the establishment and the requirements related to their creation.
 

Legislation related to setting up investment funds in Canada


In order to create an investment fund in Canada, an investor must comply with one or more laws. Among these are:
 
  1.           the National Instrument on Investment Funds which provides for the restrictions and operations of investors;
  2.           the legislation imposed on mutual funds, commodity pools, and investment funds sales;
  3.           the prospectus regulations for creating closed-ended and open-ended investment funds;
  4.           the provincial regulations related to marketing investments funds in Canada.

The main authority governing the establishment and operations of Canadian investment funds is the Canadian Securities Administration, simply known as the CSA.

Our local advisors can also help those interested in setting up a company in Canada.
 

Requirements for creating an investment fund in Canada


The requirements related to opening an investment fund in Canada depend on the type of fund to be registered with the CSA. Generally, the following documents must be prepared:
 
  •           the prospectus of the fund;
  •           the annual information formulary;
  •           information about each type of financial instrument marketed by the fund;
  •           information about the fund manager.

The investor creating the Canadian investment fund is also required to register a company which will be used as a vehicle for promoting the fund.

Foreign investors should also know that non-resident fund managers can be appointed to administer the fund.
 

Types of investment funds in Canada


The following types of funds can be set up in Canada:
 
  •           retail and non-retail funds are available for registration in Canada;
  •           open and closed-ended investment funds can also be set up;
  •           foreign investors can also set up hedge funds in Canada;
  •           exchange-traded mutual funds, or ETFs, can be created in Canada.

For assistance in opening an investment fund here, please contact our company registration advisors in Canada.
 

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