The Securities Commission granted an exemption to Capital International Asset Management (Canada) Inc. and future mutual funds managed by the Filer 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, subject to conditions. These conditions include providing specific disclosures such as the award or rating name, the number of funds in the category, the ranking entity, the period the rating or award is based on, and a statement that ratings are subject to change monthly. 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 under the authority of section 19.1 of NI 81-102, which allows for exemptions from the instrument’s requirements. The Ontario Securities Commission is the principal regulator for this application, and the Filer has indicated reliance on the Multilateral Instrument 11-102 Passport System in other Canadian provinces and territories. The decision was based on the representations of the Filer, including their compliance with securities legislation and the nature of the FundsGrade and Lipper rating systems. The exemption is intended to provide investors with valuable performance information while ensuring transparency and adherence to regulatory standards.