John Kruk

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On October 4, 2018, the Canadian securities administrators published the final version of the amendments that will create a new regime for liquid alternative mutual funds (alt funds). The regime will come into effect on January 3, 2019 and could provide retail investors with greater access to alternative investment strategies, including leveraged and market neutral portfolios. Leverage Key to the regime is the ability of alt funds to use leverage. The leverage limit is effectively…
The previously published amendments (Phase 2 amendments) to NI 81-102 as part of the CSA’s fund modernization project are now in effect. For mutual funds, the changes include: a new prohibition against investing in closed-end funds (subject to an 18-month transition period for existing mutual funds), and new sales communications requirements for mutual funds following conversion from a closed-end fund structure. For closed-end funds, the changes include: a prohibition against issuing any warrants (whether as…
On June 19, 2014, the Canadian Securities Administrators (CSA) released, in final form, amendments that will apply a number of new requirements and restrictions to closed-end funds (Phase 2 amendments).  These include: a prohibition against issuing any warrants (whether as part of an initial public offering, or subsequently to existing unitholders), a prohibition against investments in mortgages (other than government-guaranteed mortgages) and certain loans, restrictions on investing in underlying funds that are not subject…
Easily overlooked in the drama of last Friday’s Ontario election call was that the Budget bill which brought down the Liberal government included proposed amendments to extend the conflict of interest investment restrictions in Part XXI of the Securities Act to public closed-end funds.  Last year’s proposed amendments to NI 81-102 and NI 81-104 (Phase 2 of the Fund Modernization project) did not mention these possible changes.  While the first CSA status report on Phase…
On April 17, 2014, the OSC published proposed changes to the new derivatives reporting rule which delay implementation and lighten some of the reporting burden on end-users. Under the proposed changes, the new implementation timeline will be as follows: New transactions: Reporting of new transactions commences on October 31, 2014 for derivatives dealers (previously July 2, 2014) and June 30, 2015 for non-derivatives dealers (previously September 30, 2014). Existing transactions with a derivatives dealer: Existing…
On Wednesday, the CSA published their proposed amendments to implement Stage 3 of the point-of-sale regime that would require delivery of Fund Facts to investors before purchase orders are submitted.  Highlights of proposed Stage 3 are: Only 2 exceptions to pre-delivery: (i) pre-authorized purchase plans (similar to current simplified prospectus delivery exemption currently in place), and (ii) purchases where the investor expresses urgency and the dealer is unable to deliver the Fund Facts within the…
Michigan’s Attorney General, Republican State Senator Joe Hune, and Steve Arwood, Director of the Michigan Department of Licensing and Regulatory Affairs announced that they would collaborate on a Michigan bill to tighten regulations on compounding pharmacies.  Over the past two years, compound pharmacies have been the subject of increasing controversy as these pharmacies create medications for an individual patient by mixing medications together or turning certain pill-form drugs into liquid form and shipping them to…
On April 1, 2013, the United States Court of Appeals for the Sixth Circuit overturned the $11.1 million judgment against MedQuest for its submission of claims to Medicare for tests in diagnostic testing facilities that were not supervised by approved physicians.  The whistleblower action was initiated by a former MedQuest employee, alleging that MedQuest, a leading diagnostic testing firm, and three of its independent diagnostic testing facilities (IDTFs) – the Charlotte Center, the Cool Springs…
The Centers for Medicare & Medicaid Services (CMS) issued a proposed rule that will increase Medicare payments to primary care physicians by 7 percent and other practitioners providing primary care services between 3 and 5 percent.  This proposed payment increase is part of the Medicare Physician Fee Schedule (MPFS) for calendar year (CY) 2013 and illustrates CMS’ commitment to promoting quality health care for beneficiaries.  As a part of the MPFS, CMS plans to pay…
The Affordable Care Act provides for nearly $30 million in grant funding for states to establish and strengthen Consumer Assistance Programs.   States must apply for the grants and articulate how they will use the funding to assist their residents with problems and related questions regarding health insurance coverage.  Consumer Assistance Programs provide assistance to state residents in numerous ways including educating residents about their health care rights and responsibilities and assisting in the preparation and…