The Securities Commission granted an exemption to Waypoint Investment Partners Inc. from certain restrictions under National Instrument 31-103, enabling inter-fund trades and in-specie transfers between public funds and managed accounts, as well as between public funds themselves. The exemption allows these transactions to occur at the last sale price instead of the closing sale price, subject to conditions.
The key regulations involved are:
– National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations, specifically section 13.5(2)(b) which restricts registered advisers from causing investment portfolios they manage to trade securities with associated portfolios or funds.
– National Instrument 81-107 Independent Review Committee for Investment Funds, which provides a framework for the oversight of inter-fund trades.
The decision was based on the following considerations:
– Inter-fund trades can offer benefits such as lower trading costs, reduced market impact, and quicker execution.
– The trades will be consistent with the investment objectives of the respective funds or managed accounts.
– An independent review committee (IRC) will oversee and approve the trades, ensuring they are in the best interests of the funds and managed accounts.
– In-specie transfers will allow managed accounts to invest in funds through the transfer of securities rather than cash, which can be more efficient and cost-effective.
The exemption is conditional upon adherence to specific procedures and oversight mechanisms, including IRC approval and compliance with the Filer’s policies and procedures. The exemption aims to facilitate more efficient portfolio management while maintaining investor protection and market integrity.