The Securities Commission has granted an exemption to I.G. Investment Management Inc., Mackenzie Financial Corporation, and Counsel Portfolio Services Inc. (collectively referred to as the Filers), along with their managed investment funds, from certain provisions of the Ontario Securities Act. This exemption allows these investment funds to invest in issuers where a substantial securityholder of the fund manager has a significant interest, and it exempts the managers from certain reporting requirements related to transactions with related parties.
The exemption replaces a previous decision that only applied to mutual funds and now includes non-redeemable investment funds subject to National Instrument 81-102 (NI 81-102). The relief is conditional upon approval from an independent review committee and annual reporting of investment particulars made under the relief.
The key regulations involved are the Ontario Securities Act, R.S.O. 1990, c. S.5, as amended, and National Instrument 81-102 Investment Funds. The decision is based on the premise that the investments are consistent with the funds’ objectives and strategies, and that the transactions are approved by the funds’ independent review committees. The exemption is also contingent upon compliance with sections 5.1 and 5.4 of National Instrument 81-107 regarding the independent review committee’s instructions and reporting.
The outcome is that the Filers and the investment funds they manage can invest in closed-end pooled funds managed by Northleaf Capital Group Ltd., in which a substantial securityholder, Power Corporation of Canada, has a significant interest, without breaching the related issuer investment restrictions or adhering to the management company reporting requirements, subject to the conditions outlined.