What does National Instrument 81-101 address?

• A. Rules on sales practices
• B. Rules on the prospectus form and content
• C. Rules on permissible advertising content
• D. Rules on insider trading disclosures

Answer: (B)

National Instrument 81-101 focuses specifically on the prospectus form and content. This regulation is important because a prospectus is a legal document that offers details about an investment to potential buyers, which helps them make informed decisions. It outlines the essential disclosures required, ensuring that investors receive comprehensive information about the investment products being offered. This regulation emphasizes transparency and protects investors by mandating specific information be presented in a standardized format, thereby contributing to market integrity.

The other options, while related to various aspects of investment practices and regulations, do not pertain specifically to the focus of National Instrument 81-101.