The Securities Commission has granted an exemption to mutual funds managed by the Filer from certain requirements of National Instrument 81-102 Investment Funds (NI 81-102), specifically paragraphs 15.3(4)(c) and (f). This exemption allows the funds to reference FundGrade A+ Awards, FundGrade Ratings, Lipper Awards, and Lipper Leader Ratings in their sales communications, which would otherwise not fully comply with the standard performance data matching and timing requirements set out in NI 81-102.
The decision is based on the understanding that these awards and ratings provide valuable, objective insights into fund performance, despite not aligning with the specific timeframes required by NI 81-102. The exemption is conditional upon the inclusion of detailed disclosure in sales communications, including the award or rating name, the number of funds in the category, the ranking entity, the period the rating or award is based on, and a statement that ratings are subject to change monthly. Additionally, the awards and ratings must be based on performance comparisons within categories established by the Canadian Investment Funds Standards Committee (CIFSC) or its successor.
The exemption is also subject to the condition that the referenced FundGrade A+ Awards and Lipper Awards must not have been awarded more than 365 days before the date of the sales communication. The decision aims to balance the need for compliance with securities regulations with the recognition of the value that these performance measures provide to investors.