Subsection 62(5)-Extension of lapse date sought to permit renewal of prospectus of certainfunds to coincide with renewal of prospectus of other funds managed by the samemanager.
Securities Act, R.S.O. 1990, c.S.5, as am
IN THE MATTER OF
THE MUTUAL RELIANCE REVIEW SYSTEM FOR EXEMPTIVE RELIEF APPLICATIONS
IN THE MATTER OF
FRANKLIN U.S. SMALL CAP GROWTH FUND AND MUTUAL BEACON FUND
MRRS DECISION DOCUMENT
WHEREAS the Canadian securities regulatory authority or regulator (the "DecisionMaker") in each of the provinces of British Columbia, Alberta, Saskatchewan, Manitoba,Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland(the "Jurisdictions") has received an application (the "Application") from TempletonManagement Limited ("Templeton" or the "Manager"), Mutual Beacon Fund and FranklinU.S. Small Cap Growth Fund (together, the "Funds") for a decision pursuant to thesecurities legislation of the Jurisdictions (the "Legislation") that the time limits pertainingto the distribution of units under the prospectuses of the Funds be extended to those timelimits that would be applicable if the lapse date of the prospectuses was May 31, 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 Templeton to the Decision Makers that:
(a) The Manager is a corporation incorporated under the laws of Ontario. TheManager is the manager, distributor and promoter of both of the Funds and istrustee of both of the Funds.
(b) The Funds are open-ended mutual fund trusts established by the Manager underthe laws of Ontario.
(c) The Funds are reporting issuers under the Act and are not in default of anyrequirements of the Act or the Regulations made thereunder.
(d) The Funds, the Templeton Growth Fund, Ltd., the Templeton RSP Funds, and theTempleton Multi-Funds are presently offered for sale on a continuous basis in eachprovince and territory of Canada pursuant to five simplified prospectuses(collectively, the "Prospectuses"). Although the method for determining the lapsedate for the Prospectuses varies from Jurisdiction to Jurisdiction, the earliest lapsedate (the "Lapse Date") for each Prospectus is as follows:
Mutual Beacon Fund March 31, 2000
Franklin U.S. Small Cap Growth Fund March 31, 2000
Templeton Growth Fund, Ltd. August 5, 2000
Templeton RSP Funds August 20, 2000
Templeton Multi-Funds December 10, 2000
(e) The Manager is seeking to align the Lapse Dates for the Prospectuses to ensureconsistent disclosure for all mutual funds managed and distributed by the Manager.Aligning the Lapse Dates would avoid the necessity of multiple amendments toreflect changes made upon the renewal of any one Prospectus.
(f) Aligning the Lapse Dates of the Prospectus would also facilitate the combinationof the Prospectuses for the Funds with each other and with the various otherTempleton funds.
(g) Since the date of the Prospectuses, no material change has occurred which has notbeen reflected in an amendment to the Prospectuses. Accordingly, theProspectuses represent up to date information regarding the mutual funds. Theextensions requested will not affect the currency or accuracy of the informationcontained in the Prospectuses of the Funds and accordingly will not be prejudicialto the public interest.
(h) The Prospectuses will have to be substantially amended in order to comply withNational Instrument 81-101. Currently, the Manager is revising the Prospectusesto comply with plain language and design guidelines. The requested extension ofthe Lapse Dates of the Prospectuses of the Funds would facilitate the completionof the redrafting process, and would ensure that the Manager has sufficient time torevise and combine the Prospectuses so that they comply with the requirements ofNational Instrument 81-101.
AND WHEREAS pursuant to the System this MRRS Decision Document evidencesthe decision of each Decision Maker (collectively, the "Decision");
AND WHEREAS each of the Decision Makers is satisfied that the test contained inthe Legislation that provides the Decision Maker with the jurisdiction to make the Decisionhas been met;
The Decision of the Decision Makers pursuant to the Legislation is that the timelimits provided by the Legislation as they apply to the distribution of securities of theFunds under the Prospectuses are hereby extended to the time limits that would beapplicable if the Lapse Dates for the Prospectuses of the Funds were May 31, 2000.
March 20th, 2000.