Capital Markets Act consultation on civil liability framework for misrepresentations in ETF prospectuses
On October 12, 2021, the Ministry of Finance published a Consultation Draft of the Capital Markets Act. The draft consults on potential changes to securities legislation regarding statutory civil liability claims for misrepresentations in prospectuses for investors who purchase exchange-traded fund (ETF) units on an exchange. The consultation follows a recent court decision that raised questions about such claims.
Staff of the Investment Funds and Structured Products Branch encourage stakeholders to provide feedback on this consultation. Comments should be submitted to the Ministry using the methods set out in the Consultation Commentary. The deadline for comments is January 21, 2022.
Pei-Ching Huang, Senior Legal Counsel, Investment Funds and Structured Products Branch
Michael Tang, Senior Legal Counsel, Investment Funds and Structured Products Branch