Securities Law & Instruments

Headnote

MRRS Exemptive Relief Application - Extension of lapse date.

Statutes Cited

Securities Act, R.S.O. 1990, c.S.5, as am., ss. 62(5)

Rules Cited

National Policy 43-201 entitled: Mutual Reliance Review System for Prospectus andAIF's.

National Instrument 81-101 entitled: Mutual Fund Prospectus Disclosure.

National Instrument 81-102 entitled: Mutual Funds.

IN THE MATTER OF THE SECURITIES LEGISLATION OFBRITISH COLUMBIA, SASKATCHEWAN, MANITOBA, ONTARIO,QUEBEC, NEW BRUNSWICK, NOVA SCOTIA, PRINCE EDWARD ISLAND,NEWFOUNDLAND, YUKON TERRITORY, NORTHWEST TERRITORIES ANDNUNAVUT TERRITORY

AND

IN THE MATTER OF
THE MUTUAL RELIANCE REVIEW SYSTEM FOR EXEMPTIVE RELIEF APPLICATIONS

AND

IN THE MATTER OF
CLARICA MONEY MARKET FUND, CLARICA PREMIER MORTGAGE FUND,CLARICA BOND FUND, CLARICA PREMIER BOND FUND, CLARICA DIVERSIFUND 40,CLARICA PREMIER DIVERSIFIED FUND, CLARICA SUMMIT GROWTH AND INCOME FUND,CLARICA SUMMIT DIVIDEND GROWTH FUND, CLARICA SUMMIT CANADIAN EQUITY FUND, CLARICA PREMIER BLUE CHIP FUND,CLARICA EQUIFUND, CLARICA PREMIER AMERICAN FUND, CLARICA AMERIFUND, CLARICA SUMMIT FOREIGN EQUITY FUND,CLARICA PREMIER INTERNATIONAL FUND, CLARICA ALPINE GROWTH EQUITY FUND, CLARICA PREMIER GROWTH FUND,CLARICA ALPINE ASIAN FUND, CLARICA PREMIER EMERGING MARKETS FUND, CLARICA ALPINE CANADIAN RESOURCES FUND (individually a "Fund" and collectively, the "Funds ")

MRRS DECISION DOCUMENT

WHEREAS the local securities regulatory authority or regulator (the "DecisionMaker") in each of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec,New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland, Yukon Territory,Northwest Territories and Nunavut Territory (the "Jurisdictions") has received anapplication from Clarica Diversico Ltd. ("Clarica") in its capacity as manager and promoterof the Funds for a decision pursuant to the securities legislation of the Jurisdictions (the"Legislation") that the lapse date of the units offered by each Fund pursuant to the 1999Disclosure Documents (defined below) be extended to September 19, 2000;

AND WHEREAS pursuant to the Mutual Reliance Review System for ExemptiveRelief Applications (the "System"), the Ontario Securities Commission is the PrincipalJurisdiction for this application;

AND WHEREAS Clarica has represented to the Decision Makers that:

1. Clarica is a corporation incorporated under the laws of Ontario. Clarica is themanager and promoter of the Funds;

2. the Funds are open-ended mutual fund trusts established by Clarica under the lawsof Ontario by declarations of trust;

3. the Funds are qualified for distribution in the Jurisdictions by means of 2 simplifiedprospectuses and 2 annual information forms dated July 19, 1999 (the "July 1999Disclosure Documents") and December 13, 1999 (the "December 1999 DisclosureDocuments" and together with the July 1999 Disclosure Documents herein referredto as the "1999 Disclosure Documents") that have been prepared and filed inaccordance with the Legislation;

4. in its pro forma version of the 1999 Disclosure Documents, Clarica hasconsolidated the July 1999 Disclosure Documents with the December 1999Disclosure Documents (the "Renewal Documents") such that the refiling timetableis determined with reference to the July 1999 Disclosure Documents. The lapsedate of the July 1999 Disclosure Documents in Ontario, Quebec and NewBrunswick is July 21, 2000, and July 19, 2000 in all other Jurisdictions.

5. in order to renew the 1999 Disclosure Documents for a further twelve-month periodfollowing the lapse date, the Renewal Documents were required to be filed withcertain securities regulatory authorities by June 19, 2000 and in each of the otherJurisdictions by June 21, 2000. Final versions of the Renewal Documents musttherefore be filed within 10 days of the applicable lapse date in the absence of theexemptive relief granted hereby;

6. the Renewal Documents are required to be filed in accordance with NationalInstrument 81-101 Mutual Fund Prospectus Disclosure ("NI 81-101"), Form NI 81-101F1, Form 81-101F2, Companion Policy 81-101CP and National Instrument 81-102 Mutual Funds ("NI 81-102") (NI 81-101, NI 81-102 collectively referred to as the"New Rules"), which collectively implement a new regulatory regime governing therequired disclosure provided by mutual funds under securities legislation inCanada. The New Rules came into force on February 1, 2000. In accordance withNI81-101, Clarica has prepared the Renewal Documents in accordance with Forms81-101F1 and 81-101F2 which prescribe new detailed disclosure requirements fora simplified prospectus and annual information form of a mutual fund;

7. on June 21, 2000, Clarica filed the Renewal Documents in each of the Jurisdictionsand has received extensive comments on the Renewal Documents from thePrincipal Jurisdiction;

8. Clarica requires more time to consider the comments and revise the RenewalDocuments accordingly, and without an extension of the lapse date, there may notbe sufficient time for Clarica to properly address and resolve the comments prior tothe filing deadline for the final versions of the Renewal Documents;

9. there have been no material changes in the affairs of the Funds since the date ofthe Disclosure Documents.

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 Decision Makers 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 Disclosure Documents, are hereby extended to the times that would beapplicable if the lapse date for such distribution under the Disclosure Documents wereSeptember 4, 2000.

July 20th , 2000.

"Rebecca Cowdery"