The Securities Commission granted an exemption to a group of mutual funds (the Funds) from the standard fund facts preparation requirements under section 2.1 of National Instrument 81-101 Mutual Fund Prospectus Disclosure (NI 81-101). This exemption allows the Funds to include specific disclosure about revisions to their tiered pricing program in their fund facts documents, deviating from Form 81-101F3 requirements.
The Funds, managed by Fidelity Investments Canada ULC, offer various series of securities with different fee structures. In 2015, the Funds introduced a program allowing investors in certain series to qualify for lower fees based on their investment size. The program has been revised to provide automatic rebates instead of automatic switches to different series, simplifying administration and increasing transparency for investors.
The exemption replaces previous relief granted for an earlier version of the pricing program and is subject to the condition that each fund facts document for a Program Series of a Fund contains the revised program disclosure. The exemption is based on the Funds’ commitment to transparency and the benefits of reduced administrative complexity and enhanced investor understanding of fee rebates.
The decision was made under the securities legislation of Ontario, with the Ontario Securities Commission acting as the principal regulator. The Filer has indicated reliance on section 4.7(1) of Multilateral Instrument 11-102 Passport System in other Canadian provinces and territories. The exemption is contingent on the inclusion of the revised program disclosure in the fund facts documents, ensuring investors receive clear information about the tiered pricing program and associated fee rebates.