The Ontario Securities Commission (OSC) has approved an application by Purpose Investments Inc. (the Filer) on behalf of several funds (the Funds) for an extension of the lapse date for their simplified prospectus. The Filer sought to align the renewal process of the Funds’ prospectus with that of other funds managed by the Filer (the Other Funds) to streamline disclosure and reduce costs.
The Filer is a corporation registered in various capacities across Canadian provinces and territories, managing the Funds, which are mutual funds and reporting issuers in Canada. The Funds’ current prospectus was set to lapse on March 22, 2023, which would require a new prospectus to be filed and receipted according to specific deadlines under subsection 62(2) of the Securities Act (Ontario).
The Filer argued that renewing the Funds’ prospectus separately from the Other Funds’ prospectus, which has an April 14, 2023 lapse date, would be unreasonable due to the proximity of the two dates and the associated costs. The Filer assured that there had been no material changes in the Funds’ affairs since the last prospectus amendment and that any future material changes would be disclosed as required by law.
The OSC, serving as the principal regulator, determined that granting the extension would not compromise the accuracy of the information in the current prospectus or be prejudicial to the public interest. Consequently, the OSC extended the lapse date for the Funds’ prospectus to April 14, 2023, to coincide with the lapse date of the Other Funds’ prospectus.
The decision was made under the securities legislation of Ontario and relied upon in other Canadian provinces and territories through section 4.7(1) of Multilateral Instrument 11-102 Passport System. The outcome allows the Filer to renew the prospectus for both the Funds and the Other Funds simultaneously, facilitating a more efficient and cost-effective process.