The rules have been expanded to partly address mergers of multi-class (switch fund) MFCs into MFTs

Before s. 131(4.1) was enacted, two funds in a multi-class mutual fund corporation could undergo a tax-deferred merger in which s. 86 was relied on to give a rollover to the terminating fund’s shareholders. S. 131(4.1) now in effect requires that the portfolios underlying the terminating and surviving funds must be identical before the shareholders qualify for a tax-deferred rollover. Thus, before the merger, the portfolio of each fund would be reorganized to ensure this identical nature.

A proposed amendment to s. 132.2 would permit, say, a multi-class MFC with 20 classes of shares to transfer its assets to 20 different MFTs on a class-by-class basis.

Many multi-class MFCs in the marketplace are fund-of-fund structures in which, for example, the Canadian equity class of the MFC may own only units of the MFT version of the manager’s Canadian equity fund. There are concerns (that have been raised with Finance) that, in that example, the Canadian equity class of the MFC may not transfer its units of the bottom fund to the bottom fund under s. 132.2.

Neal Armstrong. Summaries of Hugh Chasmar, "Corporate Class Funds", Canadian Tax Highlights, Vol. 25, No. 8, August 2017, p. 6 under s. 131(4.1) and s. 132.2(1) – qualifying exchange.