The Securities Commission has granted an exemption to Counsel Portfolio Services Inc. (the Filer) from certain requirements of National Instrument 81-102 Investment Funds (NI 81-102). This exemption allows the Filer to reference FundGrade A+ Awards, FundGrade Ratings, Lipper Awards, and Lipper Leader Ratings in sales communications for mutual funds they manage, which are subject to NI 81-102.
The exemption is specifically from paragraphs 15.3(4)(c) and (f) of NI 81-102. These paragraphs generally require that performance ratings or rankings in sales communications match standard performance data periods and be published within specific timeframes relative to the data they are based on. The Filer sought relief from these requirements because the awards and ratings they wish to reference do not align with these standard periods and publication timeframes.
The exemption is conditional upon the Filer including certain disclosures in sales communications, such as the award or rating category, the number of mutual funds in the category, the ranking entity’s name, the period the award or rating is based on, and a statement that ratings are subject to change monthly. Additionally, the FundGrade A+ Awards and Lipper Awards must not have been awarded more than 365 days before the date of the sales communication, and the referenced ratings must be based on performance comparisons within categories established by the Canadian Investment Funds Standards Committee (CIFSC) or its successor.
The decision was made under the authority of section 19.1 of NI 81-102, which allows the Securities Commission to grant exemptions from requirements of the Instrument. The principal regulator, the Ontario Securities Commission, is satisfied that the exemption meets the necessary regulatory tests and is not contrary to the public interest.