The Securities Commission has granted mutual funds managed by iCapital Network Canada Ltd. (the Filer) an extension for filing and delivering their annual and interim financial statements. These funds, referred to as the Top Funds, primarily invest in Underlying Funds with later financial reporting deadlines and have financial year-end dates of either December 31 or March 31.
The exemption allows the Top Funds to file and deliver annual financial statements within 183 days and interim financial statements within 120 days of their respective financial year and interim period ends. This decision is based on the rationale that the Top Funds’ auditors require the finalized financial statements from the Underlying Funds to complete their audits, and these are often not available before the standard filing deadlines set by National Instrument 81-106 Investment Fund Continuous Disclosure (NI 81-106).
The relief from the standard filing and delivery deadlines is conditional upon several factors, including the majority of the Top Funds’ assets being invested in Underlying Funds that have similar financial year ends and are subject to laws or agreements that allow for the extended reporting deadlines. Additionally, the offering memorandum provided to securityholders must disclose the extended filing deadlines, and the Top Funds must inform their securityholders of their intention to rely on this exemption.
The decision also includes the revocation of a previous decision that granted similar relief but with a slightly shorter extension period for annual financial statements. The exemption is subject to the condition that it will terminate within one year of any amendment to NI 81-106 or other rule that modifies the filing and delivery deadlines for mutual funds.
This decision is made under the authority of sections 2.2, 2.4, 5.1(2), and 17.1 of NI 81-106 and section 144 of the Securities Act (Ontario).