The Ontario Securities Commission granted an exemption to allow the consolidation of the simplified prospectus of alternative mutual funds with those of mutual funds that are not alternative mutual funds. This decision was made to reduce costs and streamline the distribution and disclosure process. Additionally, an extension was granted for the lapse date of three prospectuses to align with the renewal of a fourth prospectus, facilitating a more practical and cost-effective renewal process.
The exemption was granted under subsection 5.1(4) of National Instrument 81-101 Mutual Fund Prospectus Disclosure (NI 81-101), which typically prohibits such consolidation, and under subsection 62(5) of the Securities Act (Ontario) for the lapse date extension. The decision was based on the reasoning that the consolidation would not compromise the accuracy of information provided to investors and would be in the public interest. The funds involved are managed by Fidelity Investments Canada ULC and include both alternative mutual funds and other mutual funds that share common operational and administrative features. The decision allows for a more efficient comparison of fund features for investors and aligns with the treatment of exchange-traded funds under National Instrument 41-101 General Prospectus Requirements.