The Securities Commission granted an exemption to investment funds from the margin deposit limits specified in subsection 6.8(1) and paragraph 6.8(2)(c) of National Instrument 81-102 Investment Funds (NI 81-102). This exemption allows the funds to deposit up to 35% of their net asset value (NAV) with any single futures commission merchant in Canada or the United States, and up to 70% of their NAV with all such merchants in aggregate, for transactions in certain derivatives.
The exemption is conditional on the funds maintaining the margin in segregated accounts that are not accessible to creditors of the dealers. The decision was made under the securities legislation of Alberta and Ontario, with Alberta Securities Commission as the principal regulator. The exemption aims to facilitate the funds’ investment strategies while ensuring risk management through margin limits and segregated accounts.