Securities Law & Instruments

Headnote

Mutual Reliance Review System for Exemptive Relief Applications - Extension of lapse date for mutual fund prospectus to allow for completion of fund mergers.

Statutes Cited

Securities Act, R.S.O. 1990 c. S.5, as amended, ss. 62(1), 62(2) and 62(5).

March 14, 2005

IN THE MATTER OF

THE SECURITIES LEGISLATION OF

BRITISH COLUMBIA, ALBERTA, SASKATCHEWAN,

MANITOBA, ONTARIO, QUEBEC, NEW BRUNSWICK, NOVA SCOTIA,

AND PRINCE EDWARD ISLAND (THE "JURISDICTIONS")

AND

IN THE MATTER OF

THE MUTUAL RELIANCE REVIEW SYSTEM

FOR EXEMPTIVE RELIEF APPLICATIONS

AND

IN THE MATTER OF

BMO INVESTMENTS INC. (THE "FILER")

AND

THE MUTUAL FUNDS SET OUT IN APPENDIX "A" (THE "FUNDS")

 

MRRS DECISION DOCUMENT

Background

The local securities regulatory authority or regulator (the "Decision Maker") in each of the Jurisdictions has received an application from the Filer and the Funds for a decision under the securities legislation of the Jurisdictions (the "Legislation") that the time limits for the renewal of the simplified prospectus of the Funds dated March 2, 2004 (the "Prospectus") be extended to those time limits that would be applicable if the lapse date of the Prospectus were April 19, 2005 (the "Requested Relief").

Under the Mutual Reliance Review System for Exemptive Relief Applications

(a) the Ontario Securities Commission is the principal regulator for this application, and

(b) this MRRS decision document evidences the decision of each Decision Maker.

Interpretation

Defined terms contained in National Instrument 14-101. Definitions have the same meaning in this decision unless they are defined in this decision.

Representations

This decision is based on the following facts represented by the Filer:

(a) The Manager is the manager of the Funds.

(b) The Manager's head office is located at 77 King Street West, Suite 4200, Toronto, Ontario, M5K 1J5.

(c) The Funds are either open-ended mutual fund trusts established under the laws of Ontario or classes of BMO Global Tax Advantage Funds Inc., a mutual fund corporation.

(d) The Funds are currently qualified for distribution in all of the provinces and territories of Canada under the simplified prospectus of the Funds dated March 2, 2004 (the "Current Prospectus").

(e) In each province of Canada, the lapse date for the Funds is March 2, 2005, which allows the Funds until March 12, 2005 to file their final materials such that a receipt for the simplified prospectus is issued by securities regulatory authorities by March 22, 2005.

(f) On January 25, 2005, a pro forma filing was filed for the Funds in all of the provinces and territories of Canada under SEDAR Project No. 732315.

(g) The Funds are reporting issuers under the Legislation. None of the Funds is in default of any of the requirements of the Legislation.

(h) On February 23, 2005, the Budget Plan 2005 was released by the Department of Finance, Canada (the "Federal Budget"). We understand that the Federal Budget may be debated for four days. A leading press agency has reported that the days of debate will be February 24, March 7, 8 and 9, 2005. The Federal Budget contemplates the repeal of the rule that limits the amount of foreign property that may be held in a registered plan, effective as of 2005. The repeal of the foreign property limit will affect a number of the Funds, particularly the RSP funds. The Manager requires additional time to assess the impact of the Federal Budget on the Funds and to determine any changes that must be made to the Prospectus in response to the Federal Budget.

(i) If the requested relief is not granted, a prospectus must be filed in accordance with the existing time limits for the renewal of the Prospectus, and must be receipted by March 22, 2005. Such a prospectus may need to be substantially revised shortly after the issuance of a final receipt in response to the Federal Budget. The financial costs and time involved in preparing, filing and printing a revised prospectus for the Funds would be unduly costly.

(j) Since March 2, 2004, the date of the Current Prospectus for the Funds, no material change has occurred. Accordingly, the Current Prospectus of the Funds represents up to date information regarding the Funds. The extension requested will not affect the currency or accuracy of the information contained in the Current Prospectus, and, accordingly, will not be prejudicial to the public interest.

Decision

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.

The decision of the Decision Makers under the Legislation is that the Requested Relief is granted, provided:

1. the Prospectus of the Funds is filed in final form no later than April 25, 2005; and

2. a final receipt is issued for the Prospectus no later than April 29, 2005.

"Susan Silma"
Director, Investment Funds Branch
Ontario Securities Commission

 

APPENDIX "A"

BMO Security Funds
BMO Aggressive Growth Funds
BMO T-Bill Fund
BMO Special Equity Fund
BMO Money Market Fund
BMO U.S. Special Equity Fund
BMO AIR MILES®†Money Market Fund
BMO Resource Fund
BMO Premium Money Market Fund
BMO Precious Metals Fund
BMO Global Science & Technology Fund
BMO Income Funds
BMO RSP Global Science & Technology Fund
BMO Mortgage and Short-Term Income Fund
BMO Emerging Markets Fund
BMO Bond Fund
BMO Monthly Income Fund
BMO U.S. Dollar Funds
BMO Global Bond Fund
BMO U.S. Dollar Money Market Fund
BMO International Bond Fund
BMO U.S. Dollar Bond Fund
BMO U.S. Dollar Equity Index Fund
 
BMO Growth Funds
BMO Global Tax Advantage Funds
BMO Asset Allocation Fund
BMO Short-Term Income Class
BMO Dividend Fund
BMO Global Balanced Class
BMO Equity Index Fund
BMO Global Equity Class
BMO Equity Fund
BMO RSP U.S. Equity Index Fund
BMO U.S. Growth Fund
BMO U.S. Value Fund
BMO RSP International Index Fund
BMO International Equity Fund
BMO NAFTA Advantage Fund
BMO European Fund
BMO Japanese Fund