The Ontario Securities Commission granted Fidelity Investments Canada ULC (the Filer) an exemption from certain requirements under National Instrument 41-101 General Prospectus Requirements (NI 41-101) and National Instrument 81-102 Investment Funds (NI 81-102). This decision allows the Filer to offer both exchange-traded and conventional mutual fund series under a single simplified prospectus, subject to conditions.
Key points of the decision include:
1. The Filer is permitted to file a prospectus for exchange-traded fund (ETF) securities in accordance with NI 81-101, excluding the need for a fund facts document, provided they include an ETF Facts document as per Part 3B of NI 41-101.
2. The Filer and each Fund can treat ETF securities and mutual fund securities as if they were separate funds for compliance with Parts 9, 10, and 14 of NI 81-102, which cover sales and redemptions.
3. The exemption is conditional upon the Filer ensuring that the simplified prospectus includes all necessary disclosures for both mutual fund securities and ETF securities, and that these disclosures do not hinder investors’ understanding of the differences between the two.
4. The Funds must comply with the relevant parts of NI 81-102 for mutual funds and exchange-traded funds, as applicable to each security type.
The decision is based on the Filer’s representations, including its compliance with securities legislation, the structure of the Funds, and the distribution and redemption mechanisms for the ETF securities. The exemption aims to facilitate efficient fund offerings while maintaining investor protection and market integrity.