Exemption granted to a mutual fund pursuant to subsection 80(b)(iii) of the Securities Actfrom the requirements of subsection 78(1) and section 79 of the Act to prepare and file withthe Commission and to send to its security holders audited annual financial statements,provided the mutual fund is terminated prior to a specified date.
Securities Act, R.R.O 1990, ss. 78(1), 79 and 80(b)(iii).
IN THE MATTER OF
THE MUTUAL RELIANCE REVIEW SYSTEM FOR EXEMPTIVE RELIEF APPLICATIONS
IN THE MATTER OF
CIBC GREATER CHINA FUND
MRRS DECISION DOCUMENT
WHEREAS the local securities regulatory authority or regulator (the "DecisionMaker") in each of the provinces of Alberta, British Columbia, Saskatchewan, Manitoba,Ontario, Quebec, Nova Scotia and Newfoundland (the "Jurisdictions") has received anapplication from CIBC Securities Inc., (the "Trustee"), as trustee of the CIBC GreaterChina Fund (the "Fund") for a decision by each Decision Maker (collectively, the"Decision") under the securities legislation of the Jurisdictions (the "Legislation") thatthe following provisions of the Legislation (the "Applicable Requirements") shall notapply to the Fund in respect of requiring the Fund to file audited annual financialstatements with the Decision Makers and to provide such statements to its securityholders;
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 to the Decision Makers that:
1. The Fund is an open-ended mutual fund trust established under the laws ofOntario on August 7, 1997.
2. The financial year-end of the Fund is December 31.
3. The Fund filed a simplified prospectus and annual information form datedAugust 7, 1997 and became a reporting issuer in each of the provinces andterritories of Canada on that date. Units of the Fund were never offered for saleto the public and the sole security holder of the Fund is Canadian Imperial Bankof Commerce ("CIBC").
4. The Fund currently holds one investment worth $153,373 as of February 15,2000.
5. Notice was given by the Trustee on November 12, 1999 to CIBC as the solesecurity holder of the Fund that the Fund was to be terminated upon the sale ofall investments held by the Fund.
6. Due to a delay in disposing of the sole remaining investment of the Fund, thetermination of the Fund has also been delayed. It is currently anticipated thatsuch termination will occur in summer 2000.
7. In connection with the termination of the Fund, a final audit will be performedand made available to the Decision Makers and the sole security holder of theFund. Should exemptive relief from the requirement to file and deliver auditedannual financial statements not be granted, such audit would closely follow andsubstantially duplicate the annual audit.
8. As the Fund is in the process of being terminated, and is not being activelymanaged, the current financial position of the Fund is expected to remainsubstantially unchanged prior to termination. The Fund's earnings are expectedto be nominal or non-existent on a going-forward basis and the Fund is notexpected to incur indebtedness, liabilities or other obligations.
9. The imposition upon the Fund of the obligation to prepare and file annualaudited financial statements as set forth in the Applicable Requirements anddeliver the same to its security holders will constitute an unnecessary andsignificant cost to the Fund and will not be of any benefit to CIBC as the solesecurity holder of the Fund.
AND WHEREAS pursuant to the System, this Decision Document evidences theDecision of each Decision Maker;
AND WHEREAS each of the Decision Makers is satisfied that the test containedin the Legislation that provides the Decision Maker with the jurisdiction to make theDecision has been met;
THE DECISION of the Decision Makers pursuant to the Legislation is that theApplicable Requirements shall not apply to the Fund in respect of requiring the Fund tofile audited annual financial statements with the Decision Makers and to provide suchstatements to its security holders, provided that the Fund is terminated prior toDecember 31, 2000.
April 11th, 2000.
"Howard I. Wetston" "Theresa McLeod"