Securities Law & Instruments

Headnote

Mutual Reliance Review System for ExemptiveRelief Applications - Relief granted to a group of mutual fundtrusts from requirement to deliver re-audited annual financialstatements.

Applicable Ontario Statutory Provisions

Securities Act, R.S.O. 1990, c. S.5, as am.s. 80(b)(iii).

IN THE MATTER OF

THE SECURITIES LEGISLATIONOF

BRITISH COLUMBIA, ALBERTA,SASKATCHEWAN,

MANITOBA, ONTARIO, QUEBEC,NOVA SCOTIA

AND NEWFOUNDLAND AND LABRADOR

AND

IN THE MATTER OF

THE MUTUAL RELIANCE REVIEWSYSTEM

FOR EXEMPTIVE RELIEF APPLICATIONS

AND

IN THE MATTER OF

SENTRY SELECT ALTERNATIVEENERGY FUND

SENTRY SELECT BIOTECHNOLOGYFUND

SENTRY SELECT GLOBAL FINANCIALSERVICES FUND

SENTRY SELECT INTERNET TECHNOLOGYFUND

SENTRY SELECT WEALTH MANAGEMENTFUND

SENTRY SELECT WIRELESS COMMUNICATIONSFUND

(collectively, the "Funds")

 

MRRS DECISION DOCUMENT

WHEREAS the local securities regulatoryauthority or regulator (the "Decision Maker") in eachof British Columbia, Alberta, Saskatchewan, Manitoba, Ontario,Quebec, Nova Scotia and Newfoundland and Labrador (the "Jurisdictions")has received an application (the "Application") fromSentry Select Capital Corp. ("Sentry"), the managerof the Funds, on behalf of each of the Funds, for a decision(the "Decision") pursuant to the securities legislationof the Jurisdictions (the "Legislation") that eachof the Funds be exempted from delivering to unitholders re-auditedannual financial statements for the year ended December 31,2001 by Deloitte & Touche LLP ("Deloitte") atthe time such statements are filed;

AND WHEREAS pursuant to the Mutual RelianceReview System for Exemptive Relief Applications (the "System"),the Ontario Securities Commission is the principal regulatorfor this Application;

AND WHEREAS Sentry has represented tothe Decision Makers that:

1. Sentry is the manager and trustee of theFunds. Sentry is a corporation incorporated under the lawsof the Province of Ontario.

2. Each of the Funds is an open-ended mutualfund trust established under the laws of the Province of Ontario.

3. Each of the Funds is a reporting issuerin each of the provinces and territories of Canada and isnot in default of any requirements of the Legislation.

4. Arthur Andersen LLP ("Andersen")audited the annual financial statements of the Funds for theyear ended December 31, 2001 (the "Initial Statements")and issued its auditors' report thereon. The Initial Statementswere filed via SEDAR on May 21, 2002 and mailed to unitholdersof the Funds. Pursuant to sections 3.1 and 3.3 of NationalInstrument 81-101, the Initial Statements were incorporatedby reference into the applicable simplified prospectus ofthe Funds and were provided to unitholders on request.

5. On June 3, 2002, Deloitte announced thecompletion of "the transaction that will enable over1,000 Andersen partners and staff to join Deloitte & Touche"and the integration of Andersen people and clients into Deloitte(the "Transaction"). Accordingly, the responsibilityto audit the Funds has been transitioned to Deloitte.

6. Each Fund is relying on Staff Notice 43-304,62-302, and 81-308 of the Canadian Securities Administratorsto transition the auditor of the Funds to Deloitte. In connectionwith the Transaction, each Fund had Deloitte re-audit theannual financial statements of the Fund for the year endedDecember 31, 2001 and provide its auditors' report thereon(the "Deloitte Statements").

7. Units of each Fund are currently qualifiedfor distribution in each of the provinces and territoriesof Canada pursuant to a simplified prospectus and annual informationform dated July 18, 2001.

8. A renewal simplified prospectus and annualinformation form were filed prior to the earliest lapse datein New Brunswick on July 22, 2002 under SEDAR Project #459902.

9. The Funds are to file the Deloitte Statementsas "Amendment to Audited Financial Statements AuditedAnnual Financial Statements" under the existing SEDARproject used by the Funds to file their continuous disclosuredocuments, including the Initial Statements. Concurrentlywith the filing of the Deloitte Statements, the Funds proposeto file on SEDAR a letter indicating that the Initial Statementsare superseded by the Deloitte Statements.

AND WHEREAS pursuant to the System thisMRRS Decision Document evidences the Decision of each DecisionMaker;

AND WHEREAS each of the Decision Makersis satisfied that the test contained in the Legislation thatprovides the Decision Maker with the jurisdiction to make theDecision has been met;

THE DECISION of the Decision Makers pursuantto the Legislation is that each of the Funds be exempted fromdelivering to securityholders the Deloitte Statements at thetime such statements are filed, provided that

i) the Deloitte Statements are substantiallythe same as the Initial Statements in all material respects,and

ii) the auditor's report of the DeloitteStatements does not contain any reservation and the reportrefers to the December 31, 2000 comparative statements ashaving been audited by other auditors.

August 7, 2002.

"Howard I. Wetston"                    "RobertL. Shirriff"