The Securities Commission has granted an exemption to Invesco Canada Ltd., allowing the consolidation of the simplified prospectus of alternative mutual funds with that of conventional mutual funds, despite existing regulations typically prohibiting such consolidation. This decision is based on the rationale that alternative mutual funds and conventional mutual funds managed by Invesco share many operational and administrative features, and consolidation would facilitate easier comparison for investors and streamline disclosure.
The exemption is granted under the condition that investors will continue to receive the required fund facts documents and that the content of these documents will not be altered due to the exemption. The decision is supported by the fact that exchange-traded funds (ETFs) are already permitted to consolidate prospectuses for alternative and conventional funds under National Instrument 41-101 General Prospectus Requirements, suggesting that mutual funds should be afforded the same treatment.
The exemption is grounded in subsection 5.1(4) of National Instrument 81-101 Mutual Fund Prospectus Disclosure, which typically requires separate prospectuses for alternative and conventional mutual funds, and is made in accordance with the securities legislation of Ontario and the Process for Exemptive Relief Applications in Multiple Jurisdictions. The Ontario Securities Commission, as the principal regulator, has approved the exemption, deeming it to meet the necessary legislative tests.