UBS Global Asset Management (Canada) Co.
Mutual Reliance Review System for Exemptive Relief Applications -- relief from requirement to obtain specific and informed written consent from clients once in each twelve-month period with respect to certain funds -- subject to conditions.
Applicable Ontario Legislation
Ontario Regulation 1015, R.R.O. 1990, sec. 227(2)(b)(ii), 233.
IN THE MATTER OF
THE SECURITIES LEGISLATION OF
ALBERTA, ONTARIO, NOVA SCOTIA
AND NEWFOUNDLAND AND LABRADOR
IN THE MATTER OF
THE MUTUAL RELIANCE REVIEW SYSTEM
FOR EXEMPTIVE RELIEF APPLICATIONS
IN THE MATTER OF
UBS GLOBAL ASSET MANAGEMENT (CANADA) CO.
MRRS DECISION DOCUMENT
WHEREAS the local securities regulatory authority or regulator (the "Decision Maker") in each of the Provinces of Alberta, Ontario, Nova Scotia and Newfoundland and Labrador (the "Jurisdictions") has received an application from UBS Global Asset Management (Canada) Co. (the "Applicant") for a decision (the "Decision") pursuant to the securities legislation of the Jurisdictions (the "Legislation") that the restriction against an adviser exercising discretionary authority with respect to a client's account to purchase and/or sell the securities of a related issuer or a connected issuer of the registrant without providing the client with the statement of policies of the registrant and securing the specific and informed written consent of the client once in each twelve month period (the "Annual Consent Requirement") does not apply to the securities of the UBS (Canada) Funds (the "Funds"), subject to certain conditions.
AND WHEREAS pursuant to the Mutual Reliance Review System for Exemptive Relief Applications (the "System"), the Ontario Securities Commission is the principal regulator for this application;
AND WHEREAS, unless otherwise defined, the terms herein have the meaning set out in National Instruments 14-101 Definitions;
AND WHEREAS it has been represented by the Applicant to the Decision Makers that:
1. The Applicant is a corporation amalgamated under the Companies Act of Nova Scotia and is registered under the Securities Act (Ontario) as an adviser, in the categories of investment counsel and portfolio manager, and as a limited market dealer. The Applicant is registered as an adviser or in an equivalent capacity in each of the other Jurisdictions. The Applicant is also registered as a limited market dealer in Newfoundland and Labrador.
2. The Applicant manages some of its client's assets on a discretionary basis with segregated, separate portfolios of securities for each client that may consist of securities of the Funds. All discretionary clients of the Applicant enter into an investment management agreement with the Applicant whereby each client specifically consents to the Applicant exercising its discretion under the investment management agreement to, among other things, buying and/or selling securities of related issuers and/or connected issuers of the Applicant, including the Funds.
3. All discretionary clients of the Applicant receive a statement of policies that lists the related issuers and connected issuers of the Applicant, including the Funds, when the client initially retains the services of the Applicant. In the event of a significant change in its statement of policies, the Applicant will provide to each of its clients a copy of the revised version of, or amendment to, its statement of policies.
4. Units of the Funds are, and will be, offered continuously to investors on a private placement basis.
WHEREAS each of the Decision Makers is satisfied that the test contained in the Legislation that provides the Decision Maker with the jurisdiction to make the Decision has been met;
AND WHEREAS pursuant to the System this MRRS Decision Document evidences the decision of each Decision Maker;
THE DECISION of the Decision Makers pursuant to the Legislation is that the Applicant is exempt from the Annual Consent Requirement under the Legislation in respect of the exercise of discretionary authority to invest in securities of the Funds provided the Applicant has secured the specific and informed written consent of the client in advance of the exercise of discretionary authority in respect of such securities.
January 26, 2005.
"Robert L. Shirriff"
"David L. Knight"