The Securities Commission granted an exemption to mutual funds managed by Starlight Investments Capital LP from certain requirements of National Instrument 81-102 Investment Funds (NI 81-102). Specifically, the exemption pertains to paragraphs 15.3(4)(c) and (f), which regulate the use of performance ratings and rankings in sales communications.
The exemption allows the funds to reference FundGrade A+ Awards, FundGrade Ratings, Lipper Awards, and Lipper Leader Ratings in their sales communications, despite these not meeting the standard performance data matching and timing requirements of NI 81-102. The exemption is subject to conditions that include providing specific disclosures about the awards and ratings, such as the category name, number of funds in the category, ranking entity, period length, and a statement that ratings are subject to monthly changes. Additionally, the referenced awards must not be older than 365 days at the time of the sales communication, and the ratings must be based on performance comparisons within categories established by the Canadian Investment Funds Standards Committee (CIFSC) or its successor.
The decision was made on the basis that these ratings and awards provide valuable, objective, and transparent performance measures that can aid investors in making informed decisions. The exemption is intended to enhance the information available to investors without being misleading, in line with the investor protection objectives of NI 81-102.