Securities Law & Instruments

Headnote

Mutual Reliance Review System for ExemptiveRelief Applications - application for mutual fund prospectuslapse date extension.

Applicable Ontario Provisions

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

IN THE MATTER OF

THE SECURITIES LEGISLATIONOF

BRITISH COLUMBIA, ALBERTA,SASKATCHEWAN,

MANITOBA, ONTARIO, QUEBEC,

NEWFOUNDLAND AND LABRADOR,

PRINCE EDWARD ISLAND AND NOVASCOTIA

AND

IN THE MATTER OF

THE MUTUAL RELIANCE REVIEWSYSTEM

FOR EXEMPTIVE RELIEF APPLICATIONS

AND

IN THE MATTER OF

STRATEGICNOVA MANAGED FUTURESHEDGE FUND

 

MRRS DECISION DOCUMENT

WHEREAS the Canadian securities regulatoryauthority or regulator (the "Decision Maker") in eachof the Provinces of British Columbia, Alberta, Saskatchewan,Manitoba, Ontario, Quebec, Newfoundland and Labrador, PrinceEdward Island and Nova Scotia (the "Jurisdictions")have received an application from Matisse Investment ManagementLtd. ("Matisse") on behalf of the StrategicNova ManagedFutures Hedge Fund (the "Fund") for a decision underthe securities legislation of the Jurisdictions (the "Legislation")that the lapse date for the prospectus of the Fund, as prescribedby the Legislation, be extended;

AND WHEREAS under the Mutual RelianceReview System for Exemptive Relief Applications (the "System"),the British Columbia Securities Commission is the principaljurisdiction for this application;

AND WHEREAS Matisse has represented tothe Decision Makers that:

1. the Fund is an open-end trust establishedunder the laws of British Columbia;

2. Matisse is the manager and promoter ofthe Fund;

3. the Royal Trust Company is the currenttrustee of the Fund;

4. the units of the Fund (the "Units")are qualified for distribution in each of the Jurisdictionsunder a prospectus of the Fund dated July 19, 2002 filed witheach of the Decision Makers (the "Current Prospectus"),for which a receipt was issued by each of the Decision Makersdated July 22, 2002;

5. Matisse intends to make certain changesto the Fund, including changing the name of the Fund, appointinga new portfolio manager of the Fund, and replacing the currentcustodian and trustee of the Fund;

6. Matisse has filed applications with theDecision Makers of British Columbia and Ontario to vary pastexemption orders of those Decision Makers in respect of adviserrequirements under the Legislation of those Jurisdictions,to reflect the intended appointment of the new portfolio manager;

7. Matisse, on behalf of the Fund, filed apro forma prospectus and related documents on June 17, 2003with each of the Decision Makers as part of its annual renewalprospectus filing;

8. Matisse, on behalf of the Fund, intendsto file a final prospectus of the Fund (the "Final Prospectus")with each of the Decision Makers, to ensure the Units continueto be qualified for distribution in the Jurisdictions beyondthe lapse dates for the Current Prospectus;

9. there has been no material change in theaffairs of the Fund since the date of the Current Prospectus;

10. effective on the date of the Final Prospectus,the Fund is to be renamed "Dynamic Managed Futures HedgeFund";

11. the Final Prospectus will contain full,true and plain disclosure of all material facts related tothe offering of the Units; and

12. under the Legislation, the lapse dateof the Current Prospectus in British Columbia and certainother Jurisdictions is 12 months after the date of the CurrentProspectus and in Quebec is 12 months from the date of thereceipt for the Current Prospectus;

AND WHEREAS under the System this MRRSdecision document evidences the decision of each Decision Maker(collectively, the "Decision");

AND WHEREAS the Decision Makers are ofthe opinion that it would not be prejudicial to the public interestto make the Decision;

THE DECISION of the Decision Makers pursuantto the Legislation is that the time periods provided by theLegislation as they apply to the continued distribution of Unitsunder the Current Prospectus for the Fund (including the timeperiods that apply to the filing and receipt of the Final Prospectus)are extended to the time periods that would be applicable ifthe lapse date in the Legislation for the distribution of Unitsunder the Current Prospectus was August 1, 2003.

July 28, 2003.

"Angela Huxham"