The Ontario Securities Commission granted Lysander Funds Limited (the Filer) an exemption to facilitate the offering of exchange-traded fund (ETF) securities and conventional mutual fund securities under a single prospectus. The exemption allows the Filer to file a simplified prospectus for ETF securities, as per National Instrument 81-101 (NI 81-101), instead of the long form prospectus required by National Instrument 41-101 (NI 41-101), provided that additional disclosures required by NI 41-101 are included. The Filer must also file ETF Facts documents as prescribed by NI 41-101 for ETF securities and Fund Facts documents for mutual fund securities.
Additionally, the Filer received technical relief from certain parts of National Instrument 81-102 (NI 81-102) to treat ETF securities and mutual fund securities as separate entities for compliance purposes. This relief pertains to parts 9, 10, and 14 of NI 81-102, which govern sales, redemptions, and other fund operations.
The decision is contingent on the Filer’s adherence to specific conditions, including compliance with NI 81-101 for the simplified prospectus and the inclusion of necessary disclosures from NI 41-101F2 not covered by NI 81-101F1. For sales and redemptions relief, the Filer must ensure that each type of fund security complies with the relevant provisions of NI 81-102.
This decision is based on the Filer’s representations, including its regulatory compliance, the structure of the Funds, and the distribution and trading mechanisms for the securities. The exemption aims to streamline the offering process and provide clear information to investors while maintaining regulatory standards.