The Ontario Securities Commission granted Quadravest Capital Management Inc. and its proposed exchange-traded mutual fund (ETF) relief from two regulatory requirements. First, the ETF is exempt from including an underwriter’s certificate in its prospectus, as Authorized Dealers and Designated Brokers will not perform traditional underwriting roles or receive underwriting fees. Second, normal-course purchases of ETF securities are exempt from take-over bid requirements, as the fluid nature of ETF securities issuance and redemption makes compliance monitoring challenging and could negatively impact liquidity. The decision is based on the Securities Act (Ontario) and National Instrument 62-104.
