The Securities Commission has granted an application by Covington Fund II Inc. for the company to cease being a reporting issuer in all Canadian jurisdictions where it held this status. The decision was made under the authority of the Securities Act (Ontario) and in accordance with National Policy 11-206, which outlines the process for an entity to cease being a reporting issuer.
The key considerations for the decision were that Covington Fund II Inc. is not an OTC reporting issuer, its securities are owned by fewer than 15 security holders in each Canadian jurisdiction and less than 51 worldwide, its securities are not traded on any public marketplace, and the company is not in default of any securities legislation.
The Ontario Securities Commission, acting as the principal regulator, determined that the company met the necessary criteria set forth in the applicable securities legislation to cease being a reporting issuer. Consequently, the order was issued, allowing Covington Fund II Inc. to no longer be subject to the reporting obligations that apply to public companies in Canada.