Companion Policy to NI 81-102 Investment Funds
Part 5 Liability and indemnification
Section 5.2

Securities Lending, Repurchase and Reverse Repurchase Transactions

(1) As described in section 5.1, section 2.15 of the Instrument to administer the investment fund’s securities lending, repurchase or reverse repurchase transactions does not relieve the manager from ultimate responsibility for the administration of those transactions in accordance with the Instrument and in conformity with the standard of care imposed on the manager by statute and required to be imposed on the agent in the relevant agreement by subsection 2.15(4) of the instrument.

(3) Under subsection 2.15(3) of the Instrument, the custodian or sub-custodian of an investment fund must be the agent appointed to act on behalf of the investment fund to administer securities lending, repurchase or reverse repurchase transactions of the investment fund. The activities of the agent, as custodian or sub-custodian, are not within the responsibility of the manager of the investment fund, as provided for in subsection 4.4(5) of the instrument. However, the activities of the agent, in its role as administering the investment funds’ securities lending, repurchase or reverse repurchase transactions, are within the ultimate responsibility of the manager, as provided for in subsection 4.4(6) of the Instrument.