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 subsections 6.8(1) and 6.8(2)(c) of National Instrument 81-102 (NI 81-102). This exemption allows these funds to deposit up to 35% of their net asset value (NAV) with any single dealer and up to 70% of their NAV with all dealers combined for transactions involving exchange-traded specified derivatives. The decision is based on the need for these funds to invest more efficiently and flexibly in such derivatives, reducing operational complexity and costs. The relief is conditional on the funds not investing in non-exchange-traded derivatives and adhering to the specified margin limits. The decision aligns with the regulatory framework under NI 81-102 and Multilateral Instrument 11-102 (MI 11-102).
