Scheduled outage for OSC Electronic Filing Portal on Thursday, April 25, 2024 from 6:00 to 11:00 pm (EST)
Canadian Anaesthetist's Mutual Accumulating Fund Limited - MRRS Decision
Headnote
Exemptive Relief Applications - Extension of lapse date to permit fund to address a contravention of the concentrationrestriction under National Instrument 81-102 Mutual Funds - proposed resolution of the contravention possibly havingimplications with respect to disclosure in renewal prospectus of fund.
Statutes Cited
Securities Act, R.S.O. 1990, c.S.5, as am., ss 62(1), 62(2) and 62(5).
IN THE MATTER OF
THE SECURITIES LEGISLATION OF
BRITISH COLUMBIA, ALBERTA, SASKATCHEWAN, MANITOBA, ONTARIO, QUEBEC, NOVA SCOTIA, NEWBRUNSWICK, NEWFOUNDLAND, NORTHWEST TERRITORIES, YUKON TERRITORY AND NUNAVUTTERRITORY
AND
IN THE MATTER OF
THE MUTUAL RELIANCE REVIEW SYSTEM FOR
EXEMPTIVE RELIEF APPLICATIONS
AND
IN THE MATTER OF
CANADIAN ANAESTHETISTS' MUTUAL ACCUMULATING FUND LIMITED
MRRS DECISION DOCUMENT
WHEREAS the Canadian securities regulatory authority or regulator (the "Decision
Maker") in each of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec,Nova Scotia, New Brunswick,Newfoundland, the Northwest Territories, the Yukon Territory and Nunavut Territory (the "Jurisdictions") has receivedan application from Canadian Anaestetists' Mutual Accumulating Fund Limited (the "Applicant" or the "Fund") for adecision pursuant to the securities legislation of the Jurisdictions (the "Legislation") that the time limits prescribed by theLegislation for filing the pro forma prospectus and final simplified prospectus for the Fund (the "Renewal Prospectus"),and the receipting thereof, be extended to the time periods that would be applicable if the lapse date for the distributionof the securities of the Fund was January 2, 2001;
AND WHEREAS pursuant to the Mutual Reliance Review System for
Exemptive Relief Applications (the "System"), the Ontario Securities Commission is the principal regulator for thisapplication;
AND WHEREAS it has been represented by the Applicant to the Decision Makers
that:
1. The Fund is an open-ended mutual fund corporation incorporated under the laws of Canada by letters patentdated September 13, 1957 and continued under the Canada Business Corporations Act February 28, 1980.
2. The principal office of the Fund is located at 94 Cumberland Street, Suite 503, Toronto, Ontario, M5R 1A3.
3. The Fund has no separate manager, trustee or promoter.
4. The Fund is a reporting issuer in the Jurisdictions and is not in default of any requirements of the Legislationor the regulations made thereunder.
5. Class A shares of the Fund are offered for sale on a continuous basis in the Jurisdictions by way of a simplifiedprospectus and an annual information form, both dated December 15, 1999, and receipted December 20, 1999.
6. Pursuant to the Legislation, the earliest lapse date for the distribution of the Class A shares of the Fund isDecember 15, 2000 (the "Lapse Date").
7. As a result, the filing of final materials for the Renewal Prospectus, unless otherwise extended, must beeffected on or before December 27, 2000 (inclusive of additional time due to holidays and weekends).
8. The Fund filed a pro forma simplified prospectus and pro forma annual information form (together, the "ProForma Prospectus") in each Jurisdiction on November 15, 2000.
9. The Fund had telephone conversations with staff of the principal regulator on November 16 and 17, 2000describing an inadvertent contravention of section 2.1(1) of National Instrument 81-102 Mutual Funds (the"Issue").
10. The Fund filed a letter with the principal regulator dated November 24, 2000 addressing the Issue.
11. The principal regulator issued a first comment letter dated December 1, 2000 in respect of the Pro FormaProspectus in which the Issue was identified as a matter under consideration.
12. The principal regulator issued a second comment letter dated December 20, 2000 in which it requested thatthe Fund advise, prior to the issuance of the receipt for the Renewal Prospectus, on how it proposes to resolvethe Issue. The resolution of the Issue may have implications with respect to the disclosure in the RenewalProspectus.
13. The Renewal Prospectus has been cleared for filing in all Jurisdictions other than Ontario.
14. The time available before the Fund's filing deadline runs through the holiday season when office closures andpersonal obligations greatly reduce availability of key personnel - both among the Decision Makers and at theApplicant - thereby making it extremely difficult for a satisfactory resolution of the Issue to be achieved withoutcausing the Fund's distribution to lapse.
15. It is not contrary to the public interest to grant the requested relief.
AND WHEREAS pursuant to the System this Decision Document evidences the
decision of each Decision Maker (the "Decision");
AND WHEREAS 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 pursuant to the Legislation is that the time
limits prescribed by the Legislation for filing the Renewal Prospectus for the Fund, and the receipting thereof, beextended to the time periods that would be applicable if the Lapse Date for the distribution of the Class A shares of theFund was January 2, 2001.
December 28, 2000.
Paul A. Dempsey
Assistant Manager / Senior Legal Counsel
Investment Funds, Capital Markets