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1832 Asset Management L.P.

2022-09-23 | Decision | 81-101 | Investment funds and structured products | https://www.osc.ca/en/securities-law/orders-rulings-decisions/1832-asset-management-lp-21

National Instrument 81-101 Mutual Funds Prospectus Requirements, ss. 5.1(4) and 6.1.


The Securities Commission has granted an exemption to a group of alternative mutual funds managed by 1832 Asset Management L.P. from the requirement under subsection 5.1(4) of National Instrument 81-101 Mutual Fund Prospectus Disclosure (NI 81-101). This requirement prohibits the consolidation of a simplified prospectus for an alternative mutual fund with that of a non-alternative mutual fund.

The decision allows the consolidation of simplified prospectuses for alternative mutual funds with those of conventional mutual funds managed by the same entity or its affiliates. The rationale for the exemption includes cost reduction, streamlined distribution, and simplified investor comparison between fund types. The decision also notes that similar consolidation is permitted for exchange-traded funds under National Instrument 41-101 General Prospectus Requirements (NI 41-101), suggesting mutual funds should not be treated differently.

The exemption is contingent on the funds continuing to provide investors with the required fund facts documents and making the simplified prospectus available upon request. The Ontario Securities Commission, acting as the principal regulator, approved the exemption after determining it met the necessary legislative criteria. The exemption applies across multiple Canadian jurisdictions under the passport application system.