The Ontario Securities Commission granted exemptive relief to 11 investment fund managers, allowing their mutual funds to temporarily borrow up to 10% of their net asset value, exceeding the usual 5% limit set by National Instrument 81-102 (NI 81-102). This relief addresses potential liquidity issues arising from the transition to a T+1 settlement cycle for North American securities, effective May 27, 2024, while some foreign markets retain a T+2 cycle. The relief aims to help funds manage mismatches in settlement timing for redemptions and purchases of securities. Conditions include the requirement for funds to exhaust available liquidity reserves before borrowing and to disclose the borrowing terms in their prospectuses. The decision is valid for three years. Relevant regulations include NI 81-102 and Multilateral Instrument 11-102.
