The Securities Commission has granted an exemption to a financial corporation managing a group of alternative mutual funds, allowing them to consolidate their simplified prospectus with that of their non-alternative mutual funds, contrary to the usual requirements. This decision is aimed at reducing costs and streamlining the distribution and disclosure processes across the corporation’s fund platform. Additionally, the Commission approved an extension of the prospectus lapse date by 226 days to align with the corporation’s primary fund family prospectus, facilitating this consolidation without conditions.
The exemptions are based on subsection 5.1(4) of National Instrument 81-101 Mutual Funds Prospectus Requirements, which typically prohibits the consolidation of prospectuses of alternative and non-alternative mutual funds, and subsection 62(5) of the Securities Act, which pertains to the lapse date of a prospectus. The decision was made considering that there have been no material changes in the funds’ affairs since their last prospectus filings, and the current prospectuses still provide accurate information. The Commission concluded that the exemptions would not be prejudicial to the public interest.