The Securities Commission has granted an exemption to a group of alternative mutual funds from the requirement under subsection 5.1(4) of National Instrument 81-101 Mutual Fund Prospectus Disclosure (NI 81-101). This requirement normally prevents the consolidation of a simplified prospectus for an alternative mutual fund with that of a non-alternative mutual fund.
The decision was influenced by several factors:
1. The Filer, a corporation managing the funds, is in good regulatory standing.
2. The alternative mutual funds share operational and administrative features with conventional funds.
3. Consolidating prospectuses would streamline disclosure and reduce costs.
4. Investors would still receive the necessary fund facts documents.
5. The consolidation aligns with practices allowed for exchange-traded funds (ETFs) under National Instrument 41-101 General Prospectus Requirements (NI 41-101), promoting consistency across fund types.
The exemption aims to facilitate easier comparison for investors and ensure consistent changes to fund features when necessary. The decision was made under the securities legislation of Ontario, with the Ontario Securities Commission acting as the principal regulator, and it is intended to be relied upon in other Canadian jurisdictions through Multilateral Instrument 11-102 Passport System.