The Securities Commission has granted an exemption to investment funds managed by Franklin Templeton Investments Corp., allowing them to invest up to 10% of their net assets in certain Irish and Luxembourg mutual funds. These foreign funds are subject to UCITS (Undertakings for Collective Investment in Transferable Securities) rules, which are comparable to Canadian regulations. The exemption is conditional on the foreign funds maintaining investment restrictions and practices similar to those in Canada, and the Canadian funds must comply with section 2.5 of National Instrument 81-102 when investing in these foreign funds. The exemption replaces a previous decision and is contingent upon the regulatory regime of the foreign funds not undergoing any material changes. The decision is based on the belief that such investments are in the best interests of the Canadian funds, providing efficient, cost-effective diversification and exposure to global markets.
