Taking too long? Close loading screen.
Generating

CI Investments Inc.

2023-03-17 | Decision | 81-102 | Investment funds and structured products | https://www.osc.ca/en/securities-law/orders-rulings-decisions/ci-investments-inc-37

National Instrument 81-102 Investment Funds, ss. 6.8(1), 6.8(2)(c) and 19.1.


The Securities Commission has granted an exemption to CI Investments Inc. (the Filer) on behalf of CI Auspice Broad Commodity ETF and potential future investment funds governed by National Instrument 81-102 Investment Funds (NI 81-102). The exemption allows these funds to exceed the standard margin deposit limits for certain derivative transactions.

Typically, under sections 6.8(1) and 6.8(2)(c) of NI 81-102, investment funds are limited to depositing no more than 10% of their net asset value (NAV) as margin for derivative transactions in Canada and abroad. The exemption permits the funds to deposit up to 35% of their NAV with any single futures commission merchant in Canada or the United States and up to 70% in total with all such merchants.

The decision was based on representations by the Filer that this exemption would enable the funds to more efficiently and flexibly pursue their investment strategies, reduce operational complexity and costs, and simplify compliance and risk management.

The exemption is conditional upon the funds not exceeding the specified margin thresholds of 35% per dealer and 70% in aggregate. The Filer is a registered investment fund manager and is not in default of any securities legislation in the jurisdictions concerned. The exemption aligns with the public interest and meets the legislative test for such decisions.