The Securities Commission has granted an application for lapse date extensions for thirteen exchange-traded funds (ETFs) managed by the same investment fund manager. The extensions vary between 24 and 109 days for four different prospectuses, allowing the manager to consolidate these prospectuses with others under their management. This consolidation aims to streamline disclosure, simplify investor comparisons, and reduce costs associated with renewals and printing.
The decision is grounded in subsection 62(5) of the Securities Act (Ontario), which allows for such extensions. The ETFs in question are all established under Ontario law and are reporting issuers across Canadian jurisdictions. They are currently distributed under prospectuses with lapse dates ranging from March to July 2021.
The manager has other ETFs with lapse dates in May, June, and August 2021, and seeks to synchronize the prospectuses to facilitate a more efficient distribution and management process. The Commission agreed that there have been no material changes in the affairs of the ETFs since their last prospectus filings, and any future material changes will prompt necessary amendments as required by law.
The Commission concluded that the extensions would not compromise the accuracy of the information in the prospectuses and would not be against the public interest. Therefore, the exemption sought was granted.