MRRS Exemptive Relief Application-Extension of lapse date.
Securities Act, R.S.O. 1990, c. S.5, as am., ss. 62(5)
National Policy 43-201 entitled: Mutual Reliance Review System for Prospectus andAIF's.
National Instrument 81-101 entitled: Mutual Fund Prospectus Disclosure.
National Instrument 81-102 entitled: Mutual Funds.
IN THE MATTER OF
THE MUTUAL RELIANCE REVIEW SYSTEM FOR EXEMPTIVE RELIEF APPLICATIONS
IN THE MATTER OF
AIM FUNDS MANAGEMENT INC.
MRRS DECISION DOCUMENT
WHEREAS the Canadian securities regulatory authority or regulator (the"Decision Maker") in each of the provinces of British Columbia, Alberta, Saskatchewan,Manitoba, Ontario, Québec, Nova Scotia, New Brunswick, Newfoundland and PrinceEdward Island (the "Jurisdictions") has received an application (the "Application") fromAIM Funds Management Inc. ("AIM"), the manager of (i) AIM Canada Income Class,AIM Canada Value Class and AIM Canada Growth Class of AIM Canada Fund Inc., (ii)AIM Short-Term Income Class, AIM America Growth Class, AIM Global Theme Class,AIM Pacific Growth Class, AIM Latin America Growth Class, AIM Global HealthSciences Class, AIM Global Natural Resources Class and AIM GlobalTelecommunications Class of AIM Global Fund Inc. and (iii) AIM Canada Money MarketFund, AIM Canadian Bond Fund, AIM Canadian Balanced Fund, AIM CanadianPremier Fund, AIM American Premier Fund, AIM American Aggressive Growth Fund,AIM Global Bond Fund, AIM Global Growth and Income Fund, AIM International ValueFund, AIM European Growth Fund, AIM Global Health Sciences Fund and AIM GlobalTechnology Fund (together, the "Funds") for a decision pursuant to the securitieslegislation of the Jurisdictions (the "Legislation") that the time limits pertaining to thedistribution of units under the simplified prospectus and annual information form(collectively the "Prospectus") of the Funds be extended to those time limits that wouldbe applicable if the lapse date of the Prospectus was October 25, 2000.
AND WHEREAS pursuant to the Mutual Reliance Review System for ExemptiveRelief Applications (the "System"), the Ontario Securities Commission is the principalregulator for this application;
AND WHEREAS it has been represented by AIM to the Decision Makers that:
1. AIM is a corporation incorporated under the laws of Ontario. AIM is themanager, trustee, distributor and promoter of those Funds that are organized asopen-ended mutual fund trusts.
2. Each of AIM Canada Fund Inc. and AIM Global Fund Inc. are mutual fundcorporations incorporated under the laws of Ontario. Each of these corporationsis authorized to issue classes of mutual fund shares. AIM is the manager,distributor and promoter of those Funds that are issued as classes of mutualfund shares of these corporations.
3. The Funds are reporting issuers under the Legislation and are not in default ofany filing requirements of the Legislation or the Regulations made thereunder.
4. The Funds are presently offered for sale on a continuous basis in each of theprovinces and territories of Canada through the Prospectus.
5. A merger of AIM Global Infrastructure Class into AIM Global TelecommunicationClass was completed effective June 23, 2000.
6. AIM faces several issues in connection with the renewal of the Prospectus:
(i) AIM is hoping to introduce a multi-series structure for the Funds in thenew simplified prospectus and annual information form. This multi-seriesstructure would permit AIM to charge differing management fees directlyto certain unitholders of a Fund and would permit AIM the flexibility toallocate administrative and operating expenses depending on the natureof the investor. AIM has filed an application with Canada Customs andRevenue Agency requesting an advance tax ruling with respect to thismulti-series structure of units for the Funds and is awaiting that ruling;
(b) AIM requires additional time to plan and co-ordinate the consolidation ofthe Funds, as well as other mutual funds managed by AIM, with mutualfunds of Trimark Investment Management Inc., resulting from the recentlyannounced acquisition of Trimark by the parent company of AIM; and
(c) AIM anticipates that such fund consolidations and the related disclosureto unitholders will cause some delays in the completion of the newprospectus and annual information form relating to the Funds.
7. Since the date of the Prospectus no material change has occurred and noamendments to the simplified prospectus have been made. Accordingly, theProspectus represents up to date information regarding each of the mutual fundsoffered. The extension requested will not affect the currency or accuracy of theinformation contained therein and accordingly will not be prejudicial to the publicinterest.
8. Under the Legislation, the earliest lapse date (the "Lapse Date") for distributionof securities of the Funds in the Jurisdictions is August 25, 2000.
AND WHEREAS pursuant to the System this MRRS Decision Documentevidences the decision of each Decision Maker (collectively, the "Decision");
AND WHEREAS each of the Decision Makers are satisfied that the testcontained in the Legislation that provides each Decision Maker with the jurisdiction tomake the Decision has been met;
The Decision of the Decision Makers pursuant to the Legislation is that the timelimits provided by Legislation as they apply to a distribution of securities under aprospectus are hereby extended to the time limits that would be applicable if the LapseDate for the distribution of securities under the Prospectus of the Funds was October25, 2000.
August 10th, 2000.