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CI Mutual Funds Inc. - MRRS Decision
Headnote
Mutual Reliance Review System for ExemptiveRelief Applications - extension of mutual fund lapse date. Extensionof time period to file final materials.
Statutes Cited
Securities Act, R.S.O., 1990 c. S.5, as amended,ss. 62(5).
IN THE MATTER OF
THE SECURITIES LEGISLATIONOF
BRITISH COLUMBIA, ALBERTA,SASKATCHEWAN, MANITOBA,
ONTARIO, QUEBEC, NOVA SCOTIA,PRINCE EDWARD ISLAND,
NEWFOUNDLAND AND LABRADOR,YUKON TERRITORY AND
NUNAVUT
AND
IN THE MATTER OF
THE MUTUAL RELIANCE REVIEWSYSTEM
FOR EXEMPTIVE RELIEF APPLICATIONS
AND
IN THE MATTER OF
BPI American Equity Fund
BPI American Equity RSP Fund
BPI American Equity SectorFund
BPI Global Equity Fund
BPI Global Equity RSP Fund
BPI Global Equity Sector Fund
BPI International Equity Fund
BPI International Equity RSPFund
BPI International Equity SectorFund
CI American ManagersTMSector Fund
CI American ManagersTMRSP Fund
CI American Value Sector Fund
CI American Value RSP Fund
CI Canadian Growth Fund
CI Canadian Sector Fund
CI Emerging Markets Fund
CI Emerging Markets RSP Fund
CI Emerging Markets SectorFund
CI European Fund
CI European RSP Fund
CI European Sector Fund
CI Global Biotechnology SectorFund
CI Global Biotechnology RSPFund
CI Global Business-to-Business(B2B) Sector Fund
CI Global Business-to-Business(B2B) RSP Fund
CI Global Consumer ProductsSector Fund
CI Global Consumer ProductsRSP Fund
CI Global Energy Sector Fund
CI Global Energy RSP Fund
CI Global Financial ServicesSector Fund
CI Global Financial ServicesRSP Fund
CI Global Focus Value SectorFund
CI Global Focus Value RSPFund
CI Global Fund
CI Global Equity RSP Fund
CI Global Sector Fund
CI Global Health SciencesSector Fund
CI Global Health SciencesRSP Fund
CI Global ManagersTMSector Fund
CI Global ManagersTMRSP Fund
CI Global Technology SectorFund
CI Global Technology RSP Fund
CI Global TelecommunicationsRSP Fund
CI Global TelecommunicationsSector Fund
CI Global Value Fund
CI Global Value RSP Fund
CI Global Value Sector Fund
CI International Fund
CI International RSP Fund
CI International Sector Fund
CI International Value Fund
CI International Value RSPFund
CI International Value SectorFund
CI Japanese Sector Fund
CI Japanese RSP Fund
CI Latin American Fund
CI Latin American RSP Fund
CI Latin American Sector Fund
CI Pacific Fund
CI Pacific RSP Fund
CI Pacific Sector Fund
CI Canadian Balanced Fund
CI Canadian Income Fund
CI Global Boomernomics®Sector Fund
CI Global Boomernomics®RSP Fund
CI International BalancedFund
CI International BalancedRSP Fund
CI International BalancedSector Fund
CI Canadian Bond Fund
CI Money Market Fund
CI Short-Term Sector Fund
CI Short-Term US$ Sector Fund
CI US Money Market Fund
CI World Bond Fund
CI Global Bond RSP Fund
Harbour Fund
Harbour Sector Fund
Harbour Foreign Equity SectorFund
Harbour Foreign Equity RSPFund
Harbour Growth & IncomeFund
Landmark American Fund
Landmark American RSP Fund
Landmark American Sector Fund
Landmark Canadian Fund
Landmark Canadian Sector Fund
Landmark Global Sector Fund
Landmark Global RSP Fund
Signature American Small CompaniesFund
Signature American Small CompaniesRSP Fund
Signature American Small CompaniesSector Fund
Signature Canadian Fund
Signature Canadian SectorFund
Signature Canadian ResourceFund
Signature Canadian ResourceSector Fund
Signature Explorer Fund
Signature Explorer SectorFund
Signature Global Small CompaniesFund
Signature Global Small CompaniesRSP Fund
Signature Global Small CompaniesSector Fund
Signature Select CanadianFund
Signature Select CanadianSector Fund
Signature Canadian BalancedFund
Signature Dividend Fund
Signature Dividend IncomeFund
Signature High Income Fund
(collectively, the "CIFunds")
MRRS DECISION DOCUMENT
WHEREAS the Canadian securities regulatoryauthority or regulator (the "Decision Maker")in each of the provinces and territories of British Columbia,Alberta, Saskatchewan, Manitoba, Ontario, Quebec, Nova Scotia,Prince Edward Island, Newfoundland and Labrador, Yukon Territoryand Nunavut (the "Jurisdictions") has receivedan application (the "Application") from CIMutual Funds Inc. ("CI"), manager of the CIFunds for a decision pursuant to securities legislation of theJurisdictions (the "Legislation") that thetime limits pertaining to the distribution of securities underthe simplified prospectuses and annual information form (collectively,the "CI Prospectus") of the CI Funds datedJuly 31, 2001 be extended to the time limits that would be applicableif the lapse dates were August 29, 2002;
AND WHEREAS under the Mutual RelianceReview System for Exemptive Relief Applications (the "System")the Ontario Securities Commission is the principal regulatorfor the Application;
AND WHEREAS the Funds have representedto the Decision Makers that:
1. C.I. Fund Management Inc., the parent companyof CI, acquired all of the outstanding shares of SpectrumInvestment Management Limited ("Spectrum")on July 25, 2002 and thereafter CI and Spectrum amalgamated.
2. Each CI Fund is a reporting issuer as definedin the Legislation and is not in default of any of the requirementsof such Legislation.
3. Units or shares of the CI Funds, as applicable,are presently offered for sale on a continuous basis in eachof the Jurisdictions through the CI Prospectus. The earliestlapse date under the Legislation for the distribution of qualifiedsecurities of the CI Funds pursuant to the CI Prospectus isJuly 31, 2002.
4. The CI Funds filed combined preliminaryand pro forma prospectuses dated June 18, 2002 (collectively,the "Renewal Prospectus") under SEDAR projectnumbers 460724 and 460827 in each of the Jurisdictions withinthe time limits specified by the Legislation.
5. There have been no material changes inthe affairs of any CI Fund since the filing of the CI Prospectusother than those for which amendments have been filed. Accordingly,the CI Prospectus and the amendments thereto represent currentinformation regarding each CI Fund. The requested lapse dateextension will not affect the accuracy of information in theCI Prospectus and therefore will not be prejudicial to thepublic interest.
6. In connection with the acquisition of Spectrum,CI is considering revising the Renewal Prospectus to includesome of the Spectrum Mutual Funds. CI requires additionaltime to determine which Spectrum Mutual Funds will be includedin the Renewal Prospectus and to prepare and file a revisedRenewal Prospectus for review by the CSA.
7. CI expects that some or all of the SpectrumMutual Funds that are not included in the Renewal Prospectus,as well as some CI Funds, will be merged with other CI Funds.CI has not yet determined which funds will be the subjectof mergers. Any such mergers would be effected in accordancewith the requirements of National Instrument 81-102 including,without limitations, filing a prospectus amendment in respectof, and obtaining approval from securityholders of, each fundthat may be terminated. CI anticipates that any such fundmergers will be completed by October 15, 2002.
8. If the requested lapse date extension toAugust 29, 2002 in respect of the CI Funds is not granted,the Renewal Prospectus will require substantial amendments,likely within 30 days of obtaining a receipt. The financialcosts and time involved in producing, filing and printingboth the Renewal Prospectus and amended and restated simplifiedprospectuses and an annual information form within a shortperiod of time following the date of the Renewal Prospectuswould be unduly costly.
9. The requested lapse date extension willnot affect the accuracy of information in the CI Prospectusand therefore will not be prejudicial to the public interest.
AND WHEREAS under the System, this MRRSDecision Document evidences the decision of each Decision Makers(collectively, the "Decision");
AND WHEREAS each Decision Maker is satisfiedthat the test contained in the Legislation that provides theDecision Maker with the jurisdiction to make the Decision hasbeen met;
THE DECISION of the Decision Makers pursuantto the Legislation is that the time periods provided in theLegislation as they apply to a distribution of securities underthe CI Prospectus, are hereby extended to the time limits thatwould be applicable if the lapse date for the distribution ofsecurities under the CI Prospectus was August 29, 2002.
August 13, 2002.
"Paul A. Dempsey"