The Securities Commission has granted an application from RBC Global Asset Management Inc. for exemptive relief concerning funds offering both exchange-traded and conventional mutual fund series under a single simplified prospectus. The relief allows the funds to treat these two types of series as if they were separate funds for compliance with certain parts of National Instrument 81-102 – Investment Funds (NI 81-102), specifically Parts 9, 10, and 14, which cover sales and redemptions.
The decision also provides technical relief from National Instrument 41-101 – General Prospectus Requirements (NI 41-101), permitting the funds to file a prospectus for exchange-traded fund (ETF) securities in accordance with National Instrument 81-101 – Mutual Fund Prospectus Disclosure (NI 81-101), excluding the requirement to file a fund facts document, and to file an ETF facts document in accordance with Part 3B of NI 41-101.
The conditions for the relief include compliance with the filing and disclosure requirements of NI 81-101 and NI 41-101, as well as the inclusion of additional disclosures and information about the decision in the simplified prospectus.
The principal regulator, the Ontario Securities Commission, has concluded that the relief meets the necessary legislative tests and has granted the requested relief, subject to the specified conditions.