The Securities Commission granted an exemption to a new alternative mutual fund, allowing it to include past performance data from a period when its securities were offered on a prospectus-exempt basis in its sales communications, simplified prospectus, fund facts documents, and management reports of fund performance (MRFP). This exemption was provided under certain sections of National Instrument 81-102 Investment Funds, National Instrument 81-101 Mutual Fund Prospectus Disclosure, and National Instrument 81-106 Investment Fund Continuous Disclosure.
The fund, which has the same investment objectives and fee structure as during the prospectus-exempt period, can now use this historical data to calculate its investment risk level in accordance with the Investment Risk Classification Methodology. The exemption is conditional upon the fund disclosing that it was not a reporting issuer during the referenced period, that expenses would have been higher had it been subject to reporting issuer requirements, and that the fund obtained relief to disclose this data. Additionally, the fund’s financial statements since the Effective Date must be posted on its website and made available upon request.
The decision was made because the Commission was satisfied that the exemption met the legislative test and would provide significant and meaningful information to investors. The principal regulator for the application was the Ontario Securities Commission, and the decision is applicable across Canadian jurisdictions.