MRRS for Exemptive Relief Applications - Extension of lapse date to permit anumber of funds sufficient time to conform their renewal prospectuses to the newdisclosure requirements of NI 81-101.
Applicable Ontario Statutory Provisions
Securities Act, R.S.O. 1990, c. S.5, as am., ss. 62(5)
ALBERTA,SASKATCHEWAN, MANITOBA, ONTARIO, QUEBEC,NOVA SCOTIA, NEW BRUNSWICK,
NEWFOUNDLAND PRINCE EDWARD ISLAND,NORTHWEST TERRITORIES,
NUNAVUT TERRITORY AND YUKON TERRITORY
IN THE MATTER OF THE
MUTUAL RELIANCE REVIEW SYSTEM FOR EXEMPTIVE RELIEF APPLICATIONS
IN THE MATTER OF
FIRST CANADIAN T-BILL FUND, FIRST CANADIAN MONEY MARKET FUND,
FIRST CANADIAN PREMIUM MONEY MARKET FUND, FIRST CANADIAN MORTGAGE FUND,
FIRST CANADIAN BOND FUND, FIRST CANADIAN MONTHLY INCOME FUND,
FIRST CANADIAN INTERNATIONAL BOND FUND, FIRST CANADIAN ASSET ALLOCATION FUND,
FIRST CANADIAN DIVIDEND FUND, FIRST CANADIAN EQUITY INDEX FUND,
FIRST CANADIAN EQUITY FUND, FIRST CANADIAN RSP U.S. EQUITY INDEX FUND,
FIRST CANADIAN U.S. GROWTH FUNDFIRST CANADIAN U.S. VALUE FUND,
FIRST CANADIAN RSP INTERNATIONAL INDEX FUND,
FIRST CANADIAN INTERNATIONAL EQUITY FUND, FIRST CANADIAN NAFTA ADVANTAGE FUND,
FIRST CANADIAN EUROPEAN FUND,FIRST CANADIAN JAPANESE FUND,
FIRST CANADIAN SPECIAL EQUITY FUND, FIRST CANADIAN U.S. SPECIAL EQUITY FUND,
FIRST CANADIAN RESOURCE FUND,FIRST CANADIAN PRECIOUS METALS FUND,
FIRST CANADIAN GLOBAL SCIENCE & TECHNOLOGY FUND,
FIRST CANADIAN EMERGING MARKETS FUND,FIRST CANADIAN FAR EAST FUND,
FIRST CANADIAN LATIN AMERICAN FUND,
FIRST CANADIAN U.S. DOLLAR MONEY MARKET FUND,
FIRST CANADIAN U.S. DOLLAR BOND FUND,
FIRST CANADIAN U.S. DOLLAR EQUITY INDEX FUND (collectively the "Funds")
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, Quebec, Nova Scotia, New Brunswick,Newfoundland, Prince Edward Island, Northwest territories, Nunavut Territory,and Yukon Territory (the "Jurisdictions") has received an application from FirstCanadian Funds Inc. (the "Applicant") on behalf of the Funds for a decisionpursuant to the securities legislation of the Jurisdictions (the "Legislation") thatthe time limit prescribed by the Legislation for filing a simplified prospectus andannual information form ("AIF") in respect of the Funds be extended;
AND WHEREAS pursuant to the Mutual Reliance Review System for ExemptiveRelief Applications (the "System"), the Ontario Securities Commission is theprincipal regulator for this application;
AND WHEREAS the Applicant has represented to the Decision Makers that:
1. The Applicant is the manager and principal distributor of the Funds.
2. The Applicant is registered under the Legislation as a dealer in thecategory of mutual fund dealer.
3. The Funds comprise thirty open-ended mutual fund trusts, each of whichwas established under the laws of Ontario pursuant to a separatedeclaration of trust and each of which is qualified for distribution in eachof the provinces and territories of Canada by means of a simplifiedprospectus and annual information form dated March 9, 1999, a receiptfor which was issued by each of the Jurisdictions on March 12, 1999 (the"Current Prospectus").
4. Each Fund is a reporting issuer in each of the provinces and territories ofCanada and is not in default of any requirements of the Legislation or therules or regulations made thereunder.
5. Pursuant to the Legislation of the Jurisdictions, except Ontario, the lapsedate for the distribution of units under the Current Prospectus is March 9,2000. The lapse date for the distribution of units under the CurrentProspectus in Ontario is March 12, 2000 (the "Lapse Date").
6. The Applicant, pursuant to National Policy 43-201 Mutual RelianceReview System for Prospectuses and Annual Information Forms, onFebruary 3, 2000, filed with the securities regulatory authorities in each ofthe provinces and territories of Canada a pro-forma simplified prospectusand pro-forma annual information form for the Funds (the "RenewalProspectus").
7. The Renewal Prospectus is required to be filed in accordance withNational Instrument 81-101 Mutual Fund Prospectus Disclosure ("NI 81-101"), Form NI 81-101F, Form NI 81-101F2 and Companion Policy 81-101CP, which collectively implement a new regulatory regime governingthe required disclosure provided by mutual funds under securitieslegislation in Canada. NI 81-101 came into force on February 1, 2000. Inaccordance with NI 81-101, the Applicant must prepare the RenewalProspectus in accordance with Forms 81-101F1 and 81-101F2 whichprescribe new detailed disclosure requirements for a simplifiedprospectus and annual information form of a mutual fund.
8. In the circumstances, it is anticipated that the review and clearanceprocedure of the Renewal Prospectus under the new regulatory regimeprovided by NI 81-101 will require more time than in other years.
9. The Applicant wants to extend the time for filing a final RenewalProspectus and obtaining receipts for the Renewal Prospectus to the timethat would be applicable if the Lapse Date was April 14, 2000.
10. There has been no material change in the affairs of the Funds since thedate of the Current Prospectus, except as have been reflected inamendments filed to the Current Prospectus.
AND WHEREAS pursuant to the System this MRRS Decision Documentevidences the decision of each Decision Maker (collectively, the "Decision");
AND WHEREAS the Decision Makers are of the opinion that it would not beprejudicial to the public interest to make the Decision;
AND WHEREAS each of the Decision Makers is satisfied that the test containedin the Legislation that provides the Decision Makers with the jurisdiction to makethe decision has been met;
THE DECISION of the Decision Makers pursuant to the Legislation is that thetime limits provided by the Legislation as they apply to the distribution of Unitsunder the Current Prospectus are hereby extended to the time periods thatwould be applicable if the Lapse Date for the distribution of Units under theCurrent Prospectus was April 14, 2000.
March 23rd, 2000.