Canadian investment regulation uses different types of documents. Some contain rules that must be followed, while others provide guidance, expectations, or internal procedures.

 

1️⃣ National Instrument (NI)

📌 Short Description: A rule adopted across all Canadian provinces and territories.

🌟 Golden Point: CSA coordinates the development of NIs → provincial and territorial regulators adopt them → the rule applies across Canada.

🔑 Difference: Think National = Canada-wide 🇨🇦

⭐ Important National Instruments to Know

  • NI 31-103: An investment advisor must be registered and follow KYC, suitability, and conflict-of-interest rules before advising clients.
  • NI 51-102 – Continuous Disclosure Obligations: A public company must regularly file financial statements and disclose important events.
  • NI 41-101 – General Prospectus Requirements: A company selling shares must provide a prospectus with financial information and risks.
  • NI 45-106 – Prospectus Exemptions: Allows companies to sell certain securities without a full prospectus under specific conditions.
  • NI 81-102 – Investment Funds: A mutual fund must follow rules about investments, diversification, and disclosure.
  • NI 24-101 – Institutional Trade Matching and Settlement: Dealers must confirm and match institutional trades within required timelines.

 

2️⃣ Multilateral Instrument (MI)

📌 Short Description: A rule adopted by several provinces or territories, but not necessarily all of Canada.

🌟 Golden Point: Participating provincial/territorial regulators adopt MIs → the rule applies only in the jurisdictions that adopted it.

🔑 Difference: NI = all jurisdictions | MI = multiple, but not necessarily all.

 

3️⃣ National Policy (NP)

📌 Short Description: Guidance explaining how regulators expect certain requirements to be understood or applied.

🌟 Golden Point: CSA and provincial/territorial regulators develop National Policies to provide consistent guidance.

🔑 Difference: NI/MI = Rules 📜 | NP = Guidance 💡

 

4️⃣ Staff Notice

📌 Short Description: A communication used to explain regulatory concerns, expectations, developments, or updates.

🌟 Golden Point: Regulatory staff issue Staff Notices to communicate information and expectations to the industry.

🔑 Difference: NP = regulatory guidance | Staff Notice = communication, expectations & updates 📢

 

5️⃣ Company Policy

📌 Short Description: An internal rule or procedure created by an investment firm for its employees and representatives.

🌟 Golden Point: The investment firm creates its own company policies to explain how its staff must operate and comply with regulatory requirements.

🔑 Difference: Regulatory documents come from regulators 🏛️ | Company policies come from the firm 🏢

 

🧠 Easy Way to Remember

NI → National rule 🇨🇦
MI → Multiple jurisdictions 🗺️
NP → Guidance 💡
Staff Notice → Expectations & Updates 📢
Company Policy → Firm’s Internal Rules 🏢

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