The Securities Commission has granted an exemption to an investment fund manager, Guardian Capital LP, from subsection 5.1(a) of National Instrument 81-105 Mutual Fund Sales Practices (NI 81-105). This exemption allows the fund manager to cover the direct costs incurred by participating dealers for sales communications, investor conferences, or seminars that primarily aim to educate on financial planning topics such as investing, retirement, tax, and estate planning.
The exemption is subject to several conditions to ensure compliance with the spirit of NI 81-105. These conditions include:
– Adherence to subsections 5.1(b) through (e) of NI 81-105.
– No requirement for participating dealers to sell the fund manager’s products.
– No additional incentives for recommending the funds to investors, beyond what is permitted by NI 81-105.
– Educational materials must contain only general information and not provide specific advice.
– The fund manager must prepare or approve the content and select or approve qualified speakers.
– Educational materials must clearly state they are for informational purposes only and not advice.
– Materials must indicate the types of professionals qualified to provide advice on the topics presented.
The decision is based on the belief that providing educational information on financial planning can benefit investors by equipping them to make informed financial decisions. The exemption was granted under the Process for Exemptive Relief Applications in Multiple Jurisdictions, with the Ontario Securities Commission acting as the principal regulator.