The Ontario Securities Commission granted Fidelity Investments Canada ULC (FIC) exemptions from certain self-dealing prohibitions under National Instrument 81-102 Investment Funds (NI 81-102) and National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations (NI 31-103). This allows inter-fund trades in debt securities between investment funds subject to NI 81-102 and Canadian pooled funds, as well as U.S. mutual and pooled funds managed by the same or affiliated managers, under specific conditions.
Key conditions include:
1. Trades must align with the investment objectives of the involved funds.
2. Approval from the Independent Review Committee (IRC) of the Canadian funds.
3. Compliance with U.S. inter-fund trading rules for U.S. funds.
4. Use of third-party CIRO registered dealers or U.S.-registered broker-dealers for certain trades to meet market integrity requirements.
The decision aims to optimize trading efficiencies and ensure compliance with both Canadian and U.S. regulations. The relief is subject to ongoing reporting requirements to the Ontario Securities Commission.