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Arrow Capital Management Inc. and Arrow Global Opportunities Alternative Class

2021-11-23 | Decision | 81-101, 81-101F3 | Investment funds and structured products | https://www.osc.ca/en/securities-law/orders-rulings-decisions/arrow-capital-management-inc-and-arrow-global-opportunities-alternative-class

National Instrument 81-101 Mutual Fund Prospectus Disclosure, ss. 2.1 and 6.1. Item 5 of Part I of Form 81-101F3 Contents of Fund Facts Document. National Instrument 81-102 Investment Funds, ss.15.3(2), 15.3(4)(c), 15.6(1)(a)(i), 15.6(1)(d), 15.8(2)(a.1),15.8(3)(a.1) and 19.1. National Instrument 81-106 Investment Fund Continuous Disclosure, ss.4.4 and 17.1. Items 3.1(7), 4.1(1), 4.1(2), 4.2(1), 4.3(1) and 4.3(2) of Part B of Form 81-106F1 and Items 3(1) and 4 of Part C of Form 81-106F1 Contents of Annual and Interim Management Report of Fund Performance.


The Securities Commission has granted an exemption to a mutual fund, AGOC, from certain disclosure requirements under securities legislation. This exemption allows AGOC to include past performance data in its sales communications, management reports, and fund facts documents, even though this data pertains to periods when AGOC was not a reporting issuer. The exemption is subject to conditions, including clear disclosure that AGOC was not a reporting issuer during the referenced period and that expenses may have been higher if it had been. Additionally, AGOC must provide access to its financial statements upon request and post them on its website.

The decision is based on the understanding that this historical data is valuable for investors making informed decisions and that the fund will be managed similarly before and after becoming a reporting issuer. The exemption is grounded in various National Instruments, including NI 81-106, NI 81-102, and NI 81-101, which govern investment fund continuous disclosure, investment funds, and mutual fund prospectus disclosure, respectively. The conditions aim to ensure transparency and investor access to relevant financial information.