The Securities Commission has granted an exemption to a group of alternative mutual funds from the requirement that their simplified prospectuses must not be consolidated with those of non-alternative mutual funds. This decision is based on National Instrument 81-101 Mutual Fund Prospectus Disclosure, specifically subsection 5.1(4), and is supported by the rationale that combining prospectuses can reduce costs, streamline disclosure, and help investors compare different fund options more easily.
The application for this exemption was made by RP Investment Advisors LP on behalf of an existing alternative mutual fund and any future alternative mutual funds managed by the firm or its affiliates. The exemption will allow these alternative funds to share a simplified prospectus with conventional mutual funds managed by the same firm, facilitating distribution and offering a more unified presentation of investment options.
The decision was made under the securities legislation of Ontario, with the Ontario Securities Commission acting as the principal regulator. The exemption is consistent with the treatment of exchange-traded funds (ETFs) under National Instrument 41-101 General Prospectus Requirements, which does not have a similar prohibition against consolidating prospectuses of alternative and conventional ETFs. The outcome is intended to benefit both the fund manager and investors while maintaining the necessary provision of fund facts documents and other investor protections.