MRRS for Exemptive Relief Applications - Extension of lapse date to permit theintegration of the operation and administration of two groups of mutual funds and theconsolidation of the disclosure materials of such funds.
Securities Act, R.S.O. 1990, c.S.5, as am., ss 62(1), 62(2) and 62(5).
IN THE MATTER OF
THE MUTUAL RELIANCE REVIEW SYSTEM FOR EXEMPTIVE RELIEF APPLICATIONS
IN THE MATTER OF
ACUITY GLOBAL EQUITY FUND, ACUITY G7 RSP EQUITY FUND
MRRS DECISION DOCUMENT
WHEREAS the Canadian securities regulatory authority or regulator (the"Decision Maker") in each of the provinces and territories of British Columbia, Alberta,Saskatchewan, Manitoba, Ontario, Québec, New Brunswick, Nova Scotia, PrinceEdward Island, Newfoundland, Northwest Territories and Yukon Territory (the"Jurisdictions") has received an application (the "Application") from Acuity Funds Ltd.(the "Manager"), Acuity Global Equity Fund and Acuity G7 RSP Equity Fund (together,the "Funds") for a decision pursuant to the securities legislation of the Jurisdictions (the"Legislation") that the time limits pertaining to the distribution of units under thesimplified prospectus (the "Prospectus") of the Funds be extended to those time limitsthat would be applicable if the lapse date of the Prospectus was October 2, 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 the Manager to the DecisionMakers that:
(a) The Manager is a corporation incorporated under the laws of the Province ofOntario. The Manager is the manager, principal distributor and promoter of theFunds. The Trust Company of the Bank of Montreal is the trustee of the Funds.
(b) The Funds are open-ended mutual fund trusts established by the Manager underthe laws of the Province of Ontario.
(c) Each Fund is a reporting issuer in the Jurisdictions and is not in default of anyrequirements of the Legislation or the rules or regulations made thereunder.
(d) Each of the Funds is qualified for distribution in the Jurisdictions by means of asimplified prospectus and annual information form dated August 30, 1999.
(e) Pursuant to the Legislation, the earliest lapse date in the Jurisdictions for thedistribution of units of the Funds under the Prospectus is August 30, 2000 (the"Lapse Date"). The lapse date for the distribution of units of the Funds underthe Prospectus in Ontario is September 3, 2000.
(f) Since the date of the Prospectus, there have been no material change to theaffairs of the Funds and no amendments to the Prospectus have been made.Accordingly, the Prospectus represents up to date information regarding each ofthe Funds offered. The extension requested will not affect the currency oraccuracy of the information contained in the Prospectus of the Funds andaccordingly will not be prejudicial to the public interest.
(g) In addition to the Funds, the Manger is also the manager, principal distributorand promoter of the Acuity Canadian Equity Fund, Acuity Canadian BalancedFund, Acuity Bond Fund, Acuity High Income Fund, Acuity Money Market Fund,Clean Environment Equity Fund, Clean Environment Balanced Fund and CleanEnvironment International Equity Fund (the "Other Acuity Funds"). The TrustCompany of the Bank of Montreal is the trustee to the Other Acuity Funds.
(h) The Other Acuity Funds are qualified for distribution in the Jurisdictions under asimplified prospectus and annual information form dated November 30, 1999.Pursuant to the Legislation, the earliest lapse date in the Jurisdictions for thedistribution of units of the Other Acuity Funds is November 30, 2000.
(i) As the Funds and the Other Acuity Funds have a common manager and theiraffairs are conducted in a similar manner, the Manager proposes to consolidatethe disclosure materials of the Funds and the Other Acuity Funds in order tofacilitate the simultaneous renewal of the prospectus for the Funds and theOther Acuity Funds. The requested extension of the Lapse Date would affordthe Manager the opportunity to release a multiple simplified prospectus andmultiple annual information form (the "Renewal Prospectus) for all the fundsmanaged by the Manager (including both the Funds and Other Acuity Funds)and consequently align the Lapse Date of the Funds with the lapse date of theOther Acuity Funds.
(j) An extension of the Lapse Date for the filing of the Renewal Prospectus wouldalso provide the Manager with the time necessary to prepare the annualdisclosure materials of the Funds and the Other Acuity Funds in accordance withNational Instrument 81-101 Mutual Fund Prospectus Disclosure.
AND WHEREAS pursuant to the System this MRRS Decision Documentevidences the decision of each Decision Maker (collectively, the "Decision");
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 thetime limits provided by Legislation as they apply to a distribution of securities under aprospectus are hereby extended to the time limits that would be applicable if the LapseDate for the distribution of units under the Prospectus of the Funds was October 2,2000.
August 4th, 2000.