meta_id 3361742

On July 29, 2026, the Canadian Securities Administrators (CSA) and the Canadian Investment Regulatory Organization (CIRO) published Joint Staff Notice 81-339, which sets out guidance on industry practices relating to the marketing and sale of exchange-traded funds (ETFs) listed on a foreign exchange but not also listed on a Canadian exchange. The Notice responds to stakeholder feedback received during the CSA's consultation on enhancing ETF regulation, which identified broad support for maintaining investor access to foreign ETFs but also concerns about regulatory differences, investor misunderstanding, and the need for enhanced disclosure. Key guidance includes: Marketing of foreign ETFs: The Notice reminds managers of foreign ETFs that active marketing or promotion in Canada could trigger the prospectus requirement and, in Ontario, Quebec, and Newfoundland and Labrador, the investment fund manager registration requirement. The Notice further explains that managers of Foreign ETFs must not distribute a security unless a prospectus has been filed and a receipt for the prospectus has been issued. Therefore, an investment fund, including a foreign ETF, must file and receive a receipt for a prospectus before it can distribute its securities in Canada, absent an exemption. Activities constituting active marketing include soliciting dealers, providing compensation or incentives, or placing advertisements in Canadian social media. Know Your Product and due diligence: Dealers must not make foreign ETFs available to clients unless they have assessed the securities' structure, features, risks, and costs, approved the securities, and monitored for significant changes. For foreign ETFs, this includes assessing disclosure, tax considerations, currency exposure, and implications of the manager not being registered in Canada or the ETF not being distributed under a Canadian prospectus. Know Your Client and suitability: Before recommending a foreign ETF, representatives must consider whether the client understands the key differences between foreign and Canadian ETFs, including regulatory differences, tax considerations, and currency implications. Representatives may only recommend a foreign ETF if it is suitable for the client and puts the client's interest first. Representatives must also periodically review accounts to ensure foreign ETF holdings continue to be suitable. Order execution-only dealers: The Notice encourages order execution-only dealers to provide alerts at critical interaction points prior to a client's purchase of a foreign ETF to inform investors of the key differences between foreign and Canadian ETFs such as tax considerations and currency conversion costs. Such alerts could be communicated through pop-up windows, confirmation checkboxes, or oral communication for phone orders. The guidance is based on existing securities regulatory requirements and does not create new legal requirements. The CSA and CIRO will continue to monitor developments in this area and consider whether further policy initiatives are needed.