The Ontario Securities Commission granted Franklin Templeton Investments Corp. and its managed funds, including the Franklin S&P 500 Dividend Aristocrats Covered Call Index ETF and Franklin S&P/TSX Canadian Dividend Aristocrats Covered Call Index ETF, an exemption from the margin deposit limits specified in National Instrument 81-102 (NI 81-102). The exemption allows these funds to deposit up to 35% of their net asset value (NAV) with any one dealer and up to 70% of their NAV with all dealers combined for transactions involving exchange-traded specified derivatives. This decision, based on the need for efficient and flexible investment strategies, reduces operational complexity and costs associated with using multiple dealers. The relief is conditional on the funds not investing in non-exchange traded derivatives and adhering to the specified margin limits. The relevant legislative provisions include NI 81-102 sections 6.8(1), 6.8(2)(c), and 19.1.
