The Securities Commission has granted a 90-day extension to non-reporting issuer mutual funds, collectively referred to as Top Funds, managed by Majestic Asset Management LLC, for the filing and delivery of their annual financial statements. This decision is based on the fact that Top Funds invest primarily in Underlying Funds, which have varying financial reporting deadlines that may extend beyond the standard 90-day period stipulated by National Instrument 81-106 Investment Fund Continuous Disclosure (NI 81-106).
The extension is conditional upon at least 25% of the Top Funds’ assets being invested in Underlying Funds that have a December 31 financial year-end and are required by their jurisdiction’s laws to deliver their financial statements within 120 days of their year-end. The Top Funds must also disclose in their offering memorandum that their annual audited financial statements will be filed and delivered within 180 days of the financial year-end, subject to regulatory approval, and notify unitholders of their reliance on the granted relief.
The relief is granted under the securities legislation of Quebec and Ontario, with the Autorité des marchés financiers acting as the principal regulator. The decision is made in accordance with sections 2.2, 5.1(2), and 17.1 of NI 81-106 and is subject to specific conditions that ensure the Top Funds’ compliance with the extended deadlines. The relief will expire one year after any amendments to NI 81-106 or other rules that affect the annual filing and delivery requirements for mutual funds.