The Securities Commission has granted an exemption to a financial management company from a specific requirement under National Instrument 81-101 Mutual Fund Prospectus Disclosure (NI 81-101). This requirement stipulates that a simplified prospectus for an alternative mutual fund must not be consolidated with that of a non-alternative mutual fund. The exemption allows the company to combine the simplified prospectus disclosures of alternative mutual funds with those of conventional mutual funds under their management, facilitating cost reduction and streamlined distribution.
The decision is based on several key points:
1. The company is a registered investment fund manager and mutual fund dealer in compliance with applicable securities legislation.
2. The alternative mutual funds in question will be established as trusts or mutual fund corporations and will be reporting issuers.
3. The funds will be subject to the requirements of NI 81-101 and NI 81-102 Investment Funds.
4. Combining prospectuses will enable easier comparison for investors and consistent operational changes across the company’s fund platform.
5. Investors will continue to receive the required fund facts documents.
6. The exemption aligns with the treatment of exchange-traded funds (ETFs) under National Instrument 41-101 General Prospectus Requirements, which does not have a similar consolidation restriction.
The principal regulator has determined that the exemption meets the necessary legislative criteria and has therefore granted the requested relief.