April 22, 2005
IN THE MATTER OF
THE SECURITIES LEGISLATION OF
BRITISH COLUMBIA, ALBERTA, SASKATCHEWAN, MANITOBA, ONTARIO, QUEBEC, NOVA SCOTIA, PRINCE EDWARD
ISLAND, NEW BRUNSWICK NEWFOUNDLAND AND LABRADOR, AND THE YUKON AND NUNAVUT TERRITORIES
IN THE MATTER OF
THE MUTUAL RELIANCE REVIEW SYSTEM
FOR EXEMPTIVE RELIEF APPLICATIONS
IN THE MATTER OF
CANADIAN SCHOLARSHIP TRUST FOUNDATION (THE "FILER")
ON BEHALF OF THE CANADIAN SCHOLARSHIP TRUST GROUP PLAN, THE CANADIAN SCHOLARSHIP TRUST
INDIVIDUAL PLAN AND THE CANADIAN SCHOLARSHIP TRUST FAMILY PLAN (COLLECTIVELY, THE "PLANS")
MRRS DECISION DOCUMENT
The local securities regulatory authority or regulator (the Decision Maker) in each of the Jurisdictions has received an application from the Filer 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 Plans dated April 27, 2004 (the Prospectus) be extended to the time limits that would be applicable if the lapse date of the Prospectus were June 14, 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.
Defined terms contained in National Instrument 14-101 Definitions have the same meaning in this decision unless they are defined in this decision.
This decision is based on the following facts represented by the Filer:
1. The Filer is a non-profit corporation without share capital incorporated by Letters Patent dated December 15, 1960 under the Canada Corporations Act with its head office located in Ontario;
2. The Plans are reporting issuers, or the equivalent thereof, as defined in the Legislation, and are not in default of any requirements of the Legislation or the regulations made thereunder;
3. The Filer is the sponsor and the administrator of the Plans;
4. The current offering of the Plans is being made pursuant to a prospectus (the "Prospectus") dated April 27, 2004, in respect of the continuous offering of scholarship agreements for the sale of units in the case of the Canadian Scholarship Trust Group Savings Plan, and scholarship savings plans in the case of the other Plans. The date of issuance of the receipt for the Prospectus is also April 27, 2004. Pursuant to the Legislation or the regulations made thereunder, the lapse date ("Lapse Date") for the distribution of scholarship agreements by the Plan is April 27, 2005.
5. There have been no material changes in the affairs of the Plan since the date of the Prospectus.
6. At the end of 2004, the Canada Education Savings Act, S.C. 2004, c. 26 ("CESA") and the Alberta Centennial Education Savings Plan Act, S.A. 2004, c. A-14.7 ("ACES") were enacted. CESA repeals the Canadian Education Savings Grant ("CESG") regulations under the Department of Human Resources Development Act (Canada), revises the CESG program and introduces the Canada Learning Bond to assist low income families with contributions to registered education savings plans ("RESPs"). ACES introduces another new grant payable into RESPs for children born in and attending school in the Province of Alberta.
7. The regulations under CESA (the Regulations) have not yet been finalized. The Regulations will contain very detailed requirements relating to eligibility for and calculation of CESGs and the Canada Learning Bond as well as rules dealing with the implications on CESGs and the Canada Learning Bond of transferring and terminating RESPs. The Regulations will also have an impact on the administration of the grant program under ACES.
8. Given that the final version of the Regulations is expected to be published in June and enacted by July 1, 2005, the Foundation seeks a 48 day extension of the lapse date for the distribution of securities under the Plans to June 14, 2005 to afford the Filer an opportunity to review the Regulations in their final form and to prepare appropriate disclosure in the renewal prospectus for the Plans so that the prospectus will contain full, true and plain disclosure of all material facts in respect of the Plans.
9. 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 27, 2005. Such a prospectus may need to be substantially revised shortly after the issuance of a final receipt in response to any changes to the Regulations prior to enactment. The financial costs and time involved in preparing, filing and printing a revised prospectus for the Plans would be unduly costly.
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 time periods provided by the Legislation as they apply to a distribution of securities under the Prospectus are hereby extended to the time periods that would be applicable if the Lapse Date was June 14, 2005.