Mutual Reliance Review System for Exemptive Relief Applications - Extension of lapse date for mutual fund prospectus in response to elimination of foreign content restrictions in February 23, 2005 federal budget.
Securities Act, R.S.O. 1990 c. S.5, as amended, ss. 62(1), 62(2) and 62(5).
IN THE MATTER OF
THE SECURITIES LEGISLATION OF
BRITISH COLUMBIA, ALBERTA, SASKATCHEWAN,
MANITOBA, ONTARIO, QUEBEC, NEW BRUNSWICK, NOVA SCOTIA,
PRINCE EDWARD ISLAND AND NEWFOUNDLAND AND LABRADOR
IN THE MATTER OF
THE MUTUAL RELIANCE REVIEW SYSTEM
FOR EXEMPTIVE RELIEF APPLICATIONS
IN THE MATTER OF
NATIONAL BANK SECURITIES INC.
THE MUTUAL FUNDS SET OUT IN SCHEDULE "A" (THE "FUNDS")
MRRS DECISION DOCUMENT
WHEREAS the Canadian securities regulatory authority or regulator (the "Decision Maker") in each of the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador (the "Jurisdictions") has received an application (the "Application") from National Bank Securities Inc. (the "Manager") and the Funds for a decision pursuant to the securities legislation of the Jurisdictions (the "Legislation") that the time limits for the renewal of the simplified prospectus of the Funds dated April 1, 2004 (the "Prospectus") be extended to those time limits that would be applicable if the lapse date of the Prospectus were April 15, 2005 (the "Requested Relief").
AND WHEREAS pursuant to the Mutual Reliance Review System for Exemptive Relief Applications (the "System"), the Authorité des marchés financiers is the principal regulator for this application;
AND WHEREAS it has been represented by the Manager to the Decision Makers that:
(a) The Manager is the manager of the Funds.
(b) The Funds are either open-ended mutual fund trusts established under the laws of Quebec or classes of a mutual fund corporation, as indicated in Appendix "A".
(c) The Funds are currently qualified for distribution in all of the provinces and territories of Canada under a simplified prospectus and annual information form of the Funds dated April 1, 2004 (the "Prospectus").
(d) The Funds are reporting issuers under the Legislation. None of the Funds is in default of any of the requirements of the Legislation.
(e) In each province of Canada other than Quebec, the lapse date for the Funds is April 1, 2005, which allows the Funds until April 11, 2005 to file their final materials such that a receipt for the Prospectus is issued by securities regulatory authorities by April 21, 2005. In Quebec, the lapse date for the Funds is April 2, 2005 and the Funds must file their final materials no later than April 12, 2005 and obtain a receipt no later than April 22, 2005.
(f) On January 24, 2005, a pro forma prospectus and annual information form was filed for the Funds in all of the provinces and territories of Canada under SEDAR Project No. 732058.
(g) On February 15, 2005, a revised draft of the pro forma prospectus and annual information form for the Funds was filed in each province and territory of Canada and the Funds were prepared to file their final prospectus and annual information form, once securities regulators in each jurisdiction had cleared the Funds to do so.
(h) On February 23, 2005, the Budget Plan 2005 was released by the Department of Finance, Canada (the "Federal Budget"). At the present date, the Federal Budget is not fully approved and did not receive Royal Assent.
(i) 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.
(j) 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 April 21, 2005.
(k) 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.
(l) A prospectus that does not address the initial measures may need to be substantially revised shortly thereafter. This process results in undue financial costs to the Funds (and thereby to investors in the Funds) as the result of preparing, filing and printing a revised prospectus.
(m) Since April 1, 2004, the date of the Prospectus, no undisclosed material change has occurred. Accordingly, the Prospectus provides accurate information regarding the Funds. The extension requested will not affect the currency or accuracy of the information contained in the Prospectus, and, accordingly, will not be prejudicial to the public interest.
AND WHEREAS pursuant to the System this MRRS Decision Document evidences decision of each Decision Maker (collectively, the "Decision");
AND WHEREAS defined terms contained in National Instrument 14-101 Definitions have the same meaning in this decision unless they are defined in this decision.
AND 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.
This decision is based on the following facts represented by the Filer :
The decision of the Decision Makers under the Legislation is that the Requested Relief is granted provided a final simplified prospectus is filed no later than 10 days after April 15, 2005 and that a receipt for the simplified prospectus is obtained no later than 20 days after April 15, 2005.
April 8, 2005.