The Securities Commission granted an exemption to a federation of financial services cooperatives, allowing them to file a base shelf prospectus for market-linked notes without principal protection, despite not meeting certain eligibility criteria. The filer, part of the Mouvement Desjardins, is a significant financial group in Canada and a designated domestic systemically important financial institution. The exemption was granted under the condition that the filer complies with all other requirements and procedures, continues to be recognized as a systemically important institution, and includes specific disclosures in the prospectus supplement about the lack of ratings and risks to investors’ principal. This decision is based on National Instruments 44-101 and 44-102, which set out the criteria for short form and shelf prospectus distributions, and the exemption is contingent upon the filer’s adherence to the terms outlined in the decision document.
