Alas it's true.
In 1998, the government in Canada enacted legislation that included a provision that made prohibited any handgun with a barrel length of less than 4.2". The move was heralded as a step towards removing guns from the hands of criminals by making the easier to conceal(!) weapons illegal.
In point of fact, it simply destroyed the value of many thousands of interesting, expensive and historically significant weapons that previously were legally owned and lawfully purchased. The criminals weren't following the first batch of laws, why would they care about the second ones?
I owned a model 66-1, 2 1/2" bbl prior to the enactment of new law, so I was grandfathered in and can continue to buy and sell these weapons. I can not pass any on to my sons unless the gun was manufactured prior to 1946, and they in turn cannot pass the firearms on under any circumstances. In the end the guns will have to be surrendered and destroyed.
I managed to find a Colt Police that was manufactured in 1945 which I purchased and transferred to my youngest son so he can now 'borrow' my prohibs legally.
I continue to hunt for one of these rare birds so he he can have a 'legacy gun' from his father. If I find a 4.2" (actually the reg reads greater than 105mm) he can register it and keep it in perpetuity.
A shot in the dark I know, but then...,