OSC 2009

Fitch Ratings, Inc. applied to the Ontario Securities Commission for an amended and restated designation order under National Instrument 25-101.

The application sought to add Fitch Ireland as a designated rating organization affiliate and remove several other entities that had ceased rating activities.

The Commission, acting as principal regulator under the passport system, granted the order, revoking the previous 2012 designation and designating the filer and its specified affiliates as designated rating organizations.

The Filer, a credit rating agency, applied for exemptive relief under the Securities Act and National Instrument 25-101.

The Filer sought confidentiality relief for revenue and financial information required in Form 25-101F1, arguing that public disclosure could compromise analyst independence and reveal competitively sensitive information.

The Filer also sought relief from the requirement that its code of conduct prohibit waivers, proposing instead to follow its own internal waiver procedures and report any waivers confidentially.

The Ontario Securities Commission granted both the confidentiality relief and the code of conduct relief, subject to conditions.

The Filer applied for exemptive relief from the concentration restriction in section 2.1(1) of National Instrument 81-102 to permit the Funds to invest more than 10% of their net assets in sovereign debt and debt of supranational agencies.

The principal regulator granted the exemption, subject to conditions including that the debt must have a minimum credit rating of 'AA' or 'AAA' and that the Funds' simplified prospectuses must disclose the exemption and associated risks.

The Sprott Physical Gold Trust applied for exemptive relief from the prospectus heading and ordering requirements of Form 41-101F2 under National Instrument 41-101.

The Trust, a foreign private issuer investing in gold bullion, sought relief only to the extent its prospectus deviated from the prescribed headings and their order, while still complying with substantive disclosure requirements.

The Director of the Ontario Securities Commission granted the requested relief, to be evidenced by the issuance of a receipt for the Trust's prospectus.

Blumont Capital Corporation applied for exemptive relief under National Instrument 81-102 to permit the merger of the Blumont North American Fund into the Blumont Canadian Fund.

The merger required approval because the funds' investment objectives were not substantially similar, it was not a qualifying exchange under the Income Tax Act, and certain continuous disclosure requirements were inadvertently missed.

The Ontario Securities Commission granted the requested relief, noting that unitholders had approved the merger and the sole investor who purchased units without knowledge of the merger was given the opportunity to redeem at no cost.

The applicant funds and their manager applied for exemptive relief from Section 2.1 of National Instrument 81-101.

The relief was sought to permit the Bottom Fund in an exchange-traded two-tier structure to file a long form prospectus using Form 41-101F2 rather than a simplified prospectus using Form 81-101F1.

The principal regulator granted the requested relief, noting that the use of a simplified prospectus could create confusion in the investment dealer channel where units of the Top Fund will be sold.

The Filer, a segregated portfolio of a Cayman Islands company, applied for exemptive relief to prepare its financial statements using International Financial Reporting Standards (IFRS) and to have them audited using International Standards on Auditing (ISA), rather than Canadian GAAP and GAAS.

The Filer also sought relief from the seed capital requirements under National Instrument 81-104.

The Ontario Securities Commission granted the requested relief, subject to conditions including that the Investment Manager maintain its initial $50,000 investment until the Filer receives $5.0 million from other investors, and that the Investment Manager maintain a minimum of $100,000 in excess working capital.

The applicant investment fund sought an exemption from the requirement in National Instrument 81-106 to calculate its net asset value on a daily basis, as it uses specified derivatives.

The Ontario Securities Commission granted the exemption, permitting the fund to calculate its net asset value on a weekly basis, provided the units remain listed on the TSX and the calculation is made available to the public.

The applicant, a commodity pool, applied for exemptive relief from the daily net asset value (NAV) calculation requirement under NI 81-106 and the seed capital requirement under NI 81-104.

The applicant sought to calculate its NAV weekly, as its returns are tied to an underlying portfolio that publishes its NAV weekly.

The principal regulator granted the requested relief, subject to conditions including maintaining minimum working capital and calculating NAV more frequently if the underlying portfolio does so.

The applicant, BMO Group Retirement Services Inc., applied for exemptive relief from the dealer registration and prospectus requirements under the Securities Act in respect of trades in mutual fund securities to tax-assisted capital accumulation plans (CAPs).

The Ontario Securities Commission granted the requested relief, subject to conditions including that the plan sponsor selects the mutual funds, provides members with specific information about the funds and fees, and provides investment decision-making tools.

The relief aligns with the proposed national exemptions for CAPs.

The applicant applied for exemptive relief under section 19.1 of National Instrument 41-101 from the requirement in subsection 2.3(1) prohibiting an issuer from filing a prospectus more than 90 days after the date of the receipt for the preliminary prospectus.

The Director granted the requested exemption, provided the final prospectus is filed no later than November 13, 2009.

The applicants sought exemptive relief on behalf of several index mutual funds from the conflict of interest provisions in section 4.1(1) of National Instrument 81-102.

The relief was requested to permit the funds to invest in equity securities during a distribution, or within 60 days thereafter, even if a related dealer acted as an underwriter.

The Ontario Securities Commission granted the relief, noting that the funds require the ability to purchase these securities to accurately track their respective indices and meet their investment objectives.

The exemption was granted subject to several conditions, including that the independent review committee approve the transactions and that the securities be acquired from an underwriter that is not a related dealer.

The applicant sought exemptive relief from the disclosure and consent requirements of section 8.2 of National Instrument 81-105 Mutual Fund Sales Practices.

The applicant argued that the continuous updating of disclosure regarding equity interests held by sales representatives would be administratively burdensome with limited benefit to investors.

The Ontario Securities Commission granted the relief, allowing for evergreen disclosure of aggregate holdings up to a stated maximum percentage, subject to specific conditions including written policies and procedures for compliance.

The applicant, Goodman & Company, Investment Counsel Ltd., applied for exemptive relief from the investment prohibition in subsection 4.1(1) of National Instrument 81-102.

The relief was sought to permit two mutual funds to invest in special warrants of a non-reporting issuer under a private placement, despite an affiliate of the applicant acting as an underwriter.

The Ontario Securities Commission granted the exemption, conditional upon the funds' independent review committee approving the investment in accordance with NI 81-107 and compliance with subsection 4.1(4)(d) of NI 81-102.

The applicant, Ark Fund Management Ltd., applied on behalf of several mutual funds for exemptive relief from certain provisions of National Instrument 81-102 Mutual Funds.

Specifically, the applicant sought exemptions from prohibitions against providing a security interest over fund assets, selling securities short, and depositing fund assets with an entity other than the fund's custodian.

The Ontario Securities Commission granted the requested relief, permitting the funds to short sell up to 20% of their net assets, subject to a series of conditions including maintaining cash cover, implementing internal controls, and providing appropriate disclosure to securityholders.

The applicants, an income fund and its holding partnership, sought an exemption from the minority approval requirement under Multilateral Instrument 61-101 for a proposed conversion to a corporate structure.

The conversion was not a business combination for the fund but technically constituted one for the holding partnership.

The Ontario Securities Commission granted the requested relief, exempting the partnership from the minority approval requirement, provided certain conditions were met.

The Filer, PowerShares India Class, applied for exemptive relief from the restriction in subclause 2.5(2)(b) of National Instrument 81-102 that prevents a mutual fund from investing in another mutual fund that invests in a third fund (the three-tiered prohibition).

The relief was sought to allow the Top Fund to invest in the PowerShares ETF, which in turn invests in a Mauritius Underlying Fund to gain tax-efficient exposure to India's capital markets.

The Ontario Securities Commission granted the exemption subject to conditions preventing fee duplication and ensuring appropriate pricing and structure.

The Manager applied for exemptive relief from certain investment restriction and custodian provisions of National Instrument 81-102 on behalf of a mutual fund.

The relief sought to permit the fund to invest up to 100% of its net assets in gold and up to 20% in other precious metals, and to use Brinks or Via Mat as sub-custodians for physical bullion storage.

The principal regulator granted the requested exemptions, subject to conditions regarding investment limits, insurance, and disclosure of unique risks.

KAB Distribution Inc. applied for an order declaring that it is no longer a reporting issuer.

The Filer had sold substantially all of its assets, cancelled its issued share capital, and had no outstanding securities.

Although the Filer was in default of certain continuous disclosure obligations, the Ontario Securities Commission granted the exemptive relief sought, determining that the Filer met the test to cease being a reporting issuer.

The Applicant, Somerset Entertainment Income Fund, applied to the Ontario Securities Commission and other jurisdictions for a decision that it is no longer a reporting issuer.

The Applicant represented that its outstanding securities are beneficially owned by fewer than 15 security holders in each jurisdiction and fewer than 51 in total in Canada, and its securities are not traded on a marketplace.

The Commission granted the requested relief, ordering that the Applicant is not a reporting issuer.