Norrep Fund - MRRS Decision

Headnote

Mutual Reliance Review System for Exemptive Relief Applications - Extension of lapse date.

Applicable Alberta Statutory Provision

Securities Act, S.A. 1981, c. S-6.1, as amended, ss. 97(8).

IN THE MATTER OF

THE SECURITIES LEGISLATION OF THE PROVINCES OF

BRITISH COLUMBIA, ALBERTA AND ONTARIO

AND

IN THE MATTER OF

THE MUTUAL RELIANCE REVIEW SYSTEM

FOR EXEMPTIVE RELIEF APPLICATIONS

AND

IN THE MATTER OF

NORREP FUND

MRRS DECISION DOCUMENT

WHEREAS the local securities regulatory authority or regulator (the "Decision Maker") in each of the provincesof Alberta, British Columbia and Ontario (the "Jurisdictions") has received an application (the "Application") from theNorrep Fund (the "Fund"), for a decision pursuant to the securities legislation of the Jurisdictions (the "Legislation")extending the lapse date prescribed by the legislation for the filing of the Fund's final simplified prospectus and finalannual information form up to May 11, 2001 inclusively in order to enable it to continue the distribution of its securitiesbeyond the Lapse Date (as defined in paragraph 4 below) of its prospectus dated April 13, 2000 (the "CurrentProspectus");

AND WHEREAS pursuant to the Mutual Reliance Review System for Exemptive Relief Applications (the"System"), the Alberta Securities Commission is the principle regulator for this Application;

AND WHEREAS it was represented by the Fund to the Decision Makers that:

1. The Fund is an open-ended mutual fund which was established by way of a Trust Agreement, as amended onJune 3, 1997 under the laws of Alberta by The Royal Trust Company, as Trustee.

2. Norrep Inc., a corporation having an office in Calgary, Alberta, manages the Fund.

3. The Fund is currently not in compliance with respect to the filing of certain of its required interim and annualfinancial disclosure and certain disclosure required pursuant to National Instrument 81-102. The Fundundertakes to ensure that these deficiencies are remedied or waived prior to or coincident with the filing of thefinal simplified prospectus of the Fund;

4. The Fund's securities are currently distributed to the public in all Jurisdictions pursuant to the CurrentProspectus. The lapse date of the Current Prospectus is April 13, 2001 in Alberta and British Columbia andApril 19, 2001 in Ontario (collectively, the "Lapse Date");

5. Since the date of the Current Prospectus, no material change has occurred in respect f the Fund and noamendments have been made to the Current Prospectus;

6. The pro forma prospectus of the Fund was not filed within the period prescribed by legislation due toinadvertence;

7. On April 11, 2001, the Fund filed with the securities regulators in the Jurisdictions a pro forma SimplifiedProspectus and Annual Information Form prepared in accordance with the provisions of National Instrument81-101.

8. The Fund has issued a directive to all dealers authorized to distribute units of the Fund to discontinue the saleand distribution of the units of the Fund until further notice.

AND WHEREAS pursuant to the System, this Decision Document evidences the decision of each DecisionMaker (collectively, the "Decision").

AND WHEREAS each of the Decision Makers is satisfied that the test contained in the Legislation that providesthe Decision Maker with the jurisdiction to make the Decision has been met;

THE DECISION of the Decision Makers pursuant to the Legislation is that the Lapse Date, is hereby extendedup to May 11, 2001 inclusively and that the distribution of the securities of the Fund may continue provided that:

(a) a receipt for the final simplified prospectus is obtained from the Decision Makers within 20 days after May 11,2001 inclusively;

(b) every security holder of record of the Fund who purchased securities of the Fund in any Jurisdiction after theLapse Date and before the date of this Decision Document (the "Affected Security Holder") is provided with theright:

to cancel (the "Cancellation Right") such purchase within 20 business days from receipt of a statement(the "Statement of Rights") describing the Cancellation Right, and

to receive upon exercise of the Cancellation Right, the purchase price per unit equal to the net assetvalue per unit on the date of such purchase (the "Purchase Price per Unit") paid on the acquisition ofsuch securities, including all fees and expenses incurred in effecting such purchase;

(c) the Fund mails the Statement of Rights and a copy of this Decision Document to Affected Security Holders nolater than 10 business days after the date of this Decision Document; and

(d) if the net asset value per unit of the Fund on the date an Affected Security Holder exercises the CancellationRight is less than the Purchase Price per Unit, Norrep Inc. shall reimburse the difference to the Fund.

DATED at Edmonton, Alberta on April 26, 2001.

"Agnes Lau"