Sprott Asset Management Inc. and Sprott Global Equity Fund - MRRS Decision

MRRS Decision

Headnote

Mutual Reliance Review System for Exemptive Relief Applications -- Exemptive relief granted to a mutual fund allowing a 27-day extension of the prospectus lapse date -- Extension of lapse date granted to facilitate consolidation of mutual fund's prospectus with prospectus of other mutual funds under common management.

Applicable Legislative Provisions

Securities Act, R.S.O. 1990, c. S.5 as am., s. 62(5).

February 28, 2008

IN THE MATTER OF

THE SECURITIES LEGISLATION OF

BRITISH COLUMBIA, ALBERTA, SASKATCHEWAN,

MANITOBA, ONTARIO, QUEBEC, NEW BRUNSWICK,

NOVA SCOTIA AND PRINCE EDWARD ISLAND

(the Jurisdictions)

AND

IN THE MATTER OF

THE MUTUAL RELIANCE REVIEW SYSTEM

FOR EXEMPTIVE RELIEF APPLICATIONS

AND

IN THE MATTER OF

SPROTT ASSET MANAGEMENT INC.

(the Filer)

AND

SPROTT GLOBAL EQUITY FUND

(the Fund)

 

MRRS DECISION DOCUMENT

Background

The local securities regulatory authority or regulator (the Decision Maker) in each of the Jurisdictions has received an application from the Filer on behalf of the Fund for a decision (the Decision) pursuant to the securities legislation of the Jurisdictions (the Legislation) that the time limits for the renewal of the simplified prospectus of the Fund dated March 30, 2007 be extended to those time limits that would be applicable if the lapse date of the Prospectus was April 26, 2008 (the Requested Relief).

Under the Mutual Reliance Review System (MRRS) for Exemptive Relief Applications:

(a) the Ontario Securities Commission is the principal regulator for this application; and

(b) this MRRS decision document evidences the decision of each Decision Maker.

Interpretation

Defined terms contained in National Instrument 14-101 Definitions have the same meaning in this decision unless they are defined in this decision.

Representations

This decision is based on the following facts represented by the Filer:

1. The Filer is the manager of the Fund.

2. The Fund is an open-ended mutual fund trust established under the laws of Ontario.

3. Units of the fund are currently qualified for distribution in all of the provinces and territories of Canada under the simplified prospectus of the Fund dated March 30, 2007 (the Prospectus).

4. The Fund is a reporting issuer under the Legislation. The Fund is not in default of any of the requirements of the Legislation.

5. In each province of Canada except for Newfoundland and Labrador, provided a pro forma simplified prospectus is filed 30 days prior to March 30, 2008, a final version of the simplified prospectus is filed by April 9, 2008 and a receipt for the simplified prospectus is issued by the securities regulatory authorities by April 19, 2008, the units of the Fund may be distributed without interruption throughout this prospectus renewal period.

6. The Filer is also the manager of Sprott Canadian Equity Fund, Sprott Gold and Precious Minerals Fund, Sprott Energy Fund and Sprott Growth Fund (collectively, the Other Funds) offered under a different simplified prospectus, the lapse date of which is April 26, 2008.

7. In order to reduce the cost of renewing the Prospectus for the Fund and reduce on-going printing and related costs, the Filer wishes to combine the Prospectus for the Fund with the prospectus of the Other Funds.

8. If the Requested Relief was not granted, it would be necessary to renew the Prospectus twice within a short period of time in order to consolidate the Prospectus with the prospectus of the Other Funds.

9. Since March 30, 2007, the date of the Prospectus, no undisclosed material change in respect of the Fund has occurred. Accordingly, the Prospectus continues to provide accurate information regarding the Fund. The requested extension will not affect the currency or the accuracy of the information contained in the Prospectus, and accordingly, will not be prejudicial to the public interest.

Decision

Each of the Decision Makers is satisfied that the test contained in the Legislation that provides the Decision Maker with the jurisdiction to make the Decision has been met.

The decision of the Decision Makers under the Legislation is that the Requested Relief is granted.

"Vera Nunes"
Assistant Manager, Investment Funds Branch
Ontario Securities Commission