Gluskin Sheff + Associates Inc. - MRRS Decision

Headnote

Mutual Reliance Review System for Exemptive Relief Applications -- relief from requirement to provide discretionary management clients with statement of policies and to obtain specific and informed written consent from clients once in each twelve-month period with respect to certain funds -- subject to conditions.

Applicable Ontario Legislation

Ontario Regulation 1015, R.R.O. 1990, ss. 227(2)(b), 233.

IN THE MATTER OF

THE SECURITIES LEGISLATION OF

ALBERTA AND ONTARIO

AND

IN THE MATTER OF

THE MUTUAL RELIANCE REVIEW SYSTEM

FOR EXEMPTIVE RELIEF APPLICATIONS

AND

IN THE MATTER OF

GLUSKIN SHEFF + ASSOCIATES INC.

MRRS DECISION DOCUMENT

WHEREAS the local securities regulatory authority or regulator (the Decision Maker) in each of the provinces of Alberta and Ontario (the Jurisdictions) has received an application (the Application) from Gluskin Sheff + Associates Inc. (GS+A) for a decision (the Decision) pursuant to the securities legislation of the Jurisdictions (the Legislation) that the restriction against an adviser exercising discretionary authority with respect to a client's account to purchase or sell the securities of a related issuer of the registrant without providing the client with the statement of policies of the registrant and securing the specific and informed written consent of the client once in each twelve month period (the Annual Consent Requirement) does not apply to any of the mutual funds or pooled funds managed or to be managed by GS+A (the Funds) subject to certain conditions.

AND WHEREAS pursuant to the Mutual Reliance Review System for Exemptive Relief Applications (the System), the Ontario Securities Commission is the principal regulator for this application;

AND WHEREAS, unless otherwise defined, the terms herein have the meaning set out in National Instrument 14-101 Definitions;

AND WHEREAS it has been represented by GS+A to the Decision Makers that:

1. GS+A is a corporation established under the laws of the Province of Ontario with its head office in Toronto, Ontario and is registered as an Investment Counsel, Portfolio Manager, Mutual Fund Dealer and Limited Market Dealer in Ontario and has equivalent registration in Alberta.

2. GS+A manages some of its clients' assets on a discretionary basis with segregated, separate portfolios of securities for each client that consists of securities of one or more of the Funds. All discretionary clients of GS+A enter in to an investment management agreement with GS+A in which the client specifically consents to GS+A exercising its discretion under the agreement to trade in the securities of one or more of the Funds.

3. GS+A may also act as an adviser without discretionary investment authority, and where required as a dealer, to other clients in connection with such other clients' investment in one or more Funds.

4. All discretionary management clients of GS+A receive a statement of policies which lists related issuers of GS+A. These related issuers include the Funds. In the event of a significant change in its statement of policies, GS+A will provide to each of its clients a copy of the revised version of, or amendment to, the statement of policies.

5. Units of each of the Funds are or will be offered for sale on an exempt basis to investors.

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;

AND WHEREAS pursuant to the System this MRRS Decision Document evidences the decision of each Decision Maker;

THE DECISION of the Decision Makers pursuant to the Legislation is that GS+A is exempt from the Annual Consent Requirement under the Legislation in respect of the exercise of discretionary authority to invest in the securities of the Funds set out in GS+A's statement of policies, provided GS+A has secured the specific and informed written consent of the client in advance of the exercise of discretionary authority in respect of the Funds.

May 28, 2004.