The Securities Commission has granted Guardian Capital LP (the Filer) relief from certain requirements for mutual funds that offer both exchange-traded and conventional series under a single simplified prospectus. The relief allows the Filer to avoid filing a long-form prospectus for exchange-traded fund (ETF) securities, provided a simplified prospectus is filed in accordance with National Instrument 41-101 (NI 41-101) and National Instrument 81-101 (NI 81-101), excluding Fund Facts requirements.
Additionally, the Filer is permitted to treat ETF and mutual fund securities as separate entities for compliance with parts 9, 10, and 14 of National Instrument 81-102 (NI 81-102), which governs investment funds. This exemption is subject to conditions ensuring that mutual fund securities comply with the relevant parts of NI 81-102 for non-exchange-traded funds, and ETF securities comply with the parts applicable to exchange-traded funds.
The decision is based on representations by the Filer that include the structure and operations of the funds, the listing of ETF securities on recognized marketplaces, and the distribution mechanisms for both ETF and mutual fund securities. The Filer has also committed to including additional disclosures in the simplified prospectus to differentiate between the ETF and mutual fund securities and to file ETF Facts documents as required.
The Ontario Securities Commission, as the principal regulator, has approved the exemptions, satisfied that they meet the legislative test for such decisions. The exemptions are conditional upon the Filer’s compliance with the specified conditions and are intended to facilitate efficient fund offerings while maintaining investor protections.