The Securities Commission has granted an application from CI Investments Inc. (the Filer) on behalf of itself and any affiliated entities acting as managers and/or portfolio managers for existing and future investment funds. The decision provides exemptions from certain investment restrictions under the Securities Act (Ontario) and National Instruments 31-103 and 81-102, allowing the Funds to invest in non-exchange-traded debt securities of related issuers in primary offerings and the secondary market, subject to conditions ensuring independent pricing and transparency.
Key conditions include the requirement for approval by an Independent Review Committee (IRC), compliance with the Funds’ investment objectives, and adherence to specified investment limits and reporting obligations. The decision also revokes previous decisions (Original Decisions) to the extent they pertain to prior relief granted to the Filer and the Funds from related securityholder and issuer requirements.
The exemptions are conditional on the securities having a designated rating, the size of the primary offerings being at least $100 million, and a minimum percentage of the offering being purchased by independent, arm’s-length purchasers. Additionally, the Funds must not exceed certain investment thresholds in securities of a related issuer post-purchase.
The decision is based on the belief that these investments are in the best interests of the Funds, providing access to high-quality debt securities and diversification opportunities that may not be replicable with other investments. The exemptions are subject to ongoing compliance with the conditions and will be monitored through annual reporting to the securities regulatory authority or regulator.