The Securities Commission has granted an exemption to mutual funds managed by Fidelity and distributed by Sterling Mutuals Inc. from the requirement to deliver a fund facts document to investors when they switch from deferred sales charge (DSC) series to initial sales charge (ISC) series due to the prohibition on DSC for mutual fund sales. This exemption is conditional upon the funds not charging an ISC for these transactions, informing investors of their rights and how to obtain the fund facts document, and providing a list of dealers relying on this exemption to the principal regulator. The exemption is based on the rationale that investors are already informed about the differences between the series and that delivering a fund facts document would not provide additional benefit. This decision is in accordance with National Instrument 81-101 Mutual Fund Prospectus Disclosure and the Process for Exemptive Relief Applications in Multiple Jurisdictions.
