Exemption for pooled funds from the requirement to file with the Commission interim financial statements under section 77(2) of the Act and comparative financial statements under section 78(1) of the Act, subject to conditions.
Securities Act, R.S.O. 1990, c. S.5 as am., ss. 74(1). National Instrument 13-101 -- System for Electronic Document Analysis and Retrieval (SEDAR), s. 2.1(1)1.
Regulation made under the Securities Act, R.R.O. Reg. 1015, as am.
IN THE MATTER OF
THE SECURITIES ACT (ONTARIO),
R.S.O. 1990, CHAPTER S.5, AS AMENDED (THE "ACT")
IN THE MATTER OF
C.A. DELANEY CAPITAL MANAGEMENT LTD.
THE DELANEY CAPITAL EQUITY FUND
(the "Current Pooled Fund")
(Section 147 of the Act)
UPON the application (the "Application") of C.A. Delaney Capital Management Ltd. (the "Company"), the manager of the Current Pooled Fund and other pooled funds established and managed by the Company from time to time (collectively, the "Pooled Funds") to the Ontario Securities Commission (the "Commission") for an order pursuant to subsection 147 of the Act exempting the Pooled Funds from filing with the Commission the interim and comparative financial statements prescribed by sections 77(2) and 78(1), respectively, of the Act;
AND UPON considering the Application and the recommendation of staff of the Commission;
AND UPON the Company having represented to the Commission that:
1. The Company is a corporation existing under the laws of Ontario with its head office in Toronto, Ontario. The Company is, or will be, the manager of the Pooled Funds. The Company is registered with the Commission as an adviser in the categories of investment counsel and portfolio manager and as a limited market dealer.
2. The Pooled Funds are, or will be, open-end mutual fund trusts established under the laws of the Province of Ontario. The Pooled Funds are not and will not be reporting issuers in any province or territory of Canada. Units of the Pooled Funds are, or will be, distributed in Canada without a prospectus pursuant to exemptions from the registration and prospectus delivery requirements of applicable securities legislation.
3. The Pooled Funds are an administratively efficient construction that is designed to permit the Company to build larger investment models rather than reproduce those same models in individual segregated accounts.
4. The Pooled Funds fit within the definition of "mutual fund in Ontario" in section 1(1) of the Act and are thus required to file with the Commission interim financial statements under section 77(2) of the Act and comparative financial statements under section 78(1) of the Act (collectively, the "Financial Statements").
5. While the Pooled Funds are structured as mutual funds, they are not public mutual funds. The Pooled Funds are not reporting issuers and are not sold to the general public.
6. Unitholders of the Pooled Funds receive the Financial Statements for the Pooled Funds they hold. The Financial Statements are prepared and delivered to unitholders in the form and for the periods required under the Act and the regulation or rules made thereunder (the "Regulation").
7. Section 2.1(1)1 of National Instrument 13-101 -- System for Electronic Document Analysis and Retrieval (SEDAR) requires that every issuer required to file a document under securities legislation make its filing through SEDAR. The Financial Statements filed with the Commission thus become publicly available.
AND UPON the Commission being satisfied that to do so would not be prejudicial to the public interest;
IT IS ORDERED by the Commission pursuant to subsection 147 of the Act that the Pooled Funds be exempted from the requirements in sections 77(2) and 78(1) of the Act to file the Financial Statements with the Commission provided:
(a) The Pooled Funds will prepare and deliver to the unitholders of the Pooled Funds the Financial Statements, in the form and for the periods required under the Act and the Regulation, as if the Financial Statements are required to be filed with the Commission;
(b) The Pooled Funds will retain the Financial Statements indefinitely;
(c) The Pooled Funds will provide the Financial Statements to the Commission or any member, employee or agent of the Commission immediately upon request of the Commission or any member, employee or agent of the Commission;
(d) The Company will provide a list of the Pooled Funds relying on this Order to the Investment Funds Branch of the Commission on an annual basis;
(e) Unitholders of the Pooled Funds will be notified that the Pooled Funds are exempted from the requirements in sections 77(2) and 78(1) of the Act to file the Financial Statements with the Commission;
(f) In all other aspects, the Pooled Funds will comply with the requirements in Ontario securities law for financial statements; and
(g) This decision, as it relates to the Commission, will terminate after the coming into force of any legislation or rule of the Commission dealing with the matters regulated by sections 77(2) and 78(1) of the Act.
February, 17 2004.
"Paul M. Moore"
"Robert W. Davis"