The Securities Commission approved the merger of two mutual funds, subject to securityholder approval, as the proposed mergers did not meet the criteria for pre-approved reorganizations and transfers in National Instrument 81-102 (NI 81-102). The key issues were that the investment objectives and fee structures of the merging funds were not substantially similar, and one merger would not be a tax-deferred transaction. The decision was based on the belief that the mergers would benefit securityholders by providing broader investment objectives, better portfolio manager flexibility, and more streamlined product offerings. The mergers were also expected to address declining assets under management and variable operating expenses of the terminating funds. The approval was contingent on the funds obtaining securityholder approval at special meetings. Relevant legislation includes NI 81-102, particularly sections 5.5(1), 5.5(3), 5.6(1), and 5.7(1), as well as tax implications under the Income Tax Act (Canada).