The Securities Commission has granted Leith Wheeler Investment Counsel Ltd. (the Filer) an exemption from dealer registration and prospectus requirements under certain conditions. This decision allows the Filer, Plan Sponsors, and mutual funds managed by the Filer to trade securities of these funds with tax-assisted and non-tax-assisted capital accumulation plans (CAPs) without the usual dealer registration and prospectus obligations.
Key conditions for the exemption include that Plan Sponsors must select the funds for investment options, establish policies for members who do not make investment decisions, and provide members with detailed information about the funds, fees, and performance. The Plan Sponsors must also offer investment decision-making tools and, if applicable, information on how to access investment advice from a registrant.
For non-tax-assisted CAPs, contributions are limited to the positive difference between the maximum amount that could have been contributed under the CAP if not restricted by the Income Tax Act (Canada) and the actual maximum dollar limit provided in the Act, with further limitations specified.
The Funds must comply with Part 2 of National Instrument 81-102 Investment Funds (NI 81-102), and for publicly available funds, the current prospectus or Fund Facts must be available to members upon demand.
The exemption is subject to termination upon the introduction of new securities rules regarding registration or prospectus exemptions for trades in mutual fund securities to CAPs or following a notice period if such rules are not proposed.
The decision is based on the Securities Act (Ontario) and is informed by National Policy 11-203 Process for Exemptive Relief Applications in Multiple Jurisdictions, Multilateral Instrument 11-102 Passport System, and other relevant securities legislation and guidelines.