Headnote
NP 11-203 – Process for Exemptive Relief Applications in Multiple Jurisdictions – exemption from requirement in section 2.1 of NI 81-101 and Item 5(b) of Form 81-101F1, Item 2 of Form 81-101F3, to permit existing funds to preserve their respective start dates once continued as mutual fund trust following the mergers – Exemption from Item 4 of Form 81-101F3, to permit continuing funds to use information of existing funds for the average return and year-by-year return in the fund facts – Exemption from sections 15.3(2), 15.8(a)(i), 15.6(b), 15.6(d), 15.8(2)(a), 15.8(3)(a) and 15.9(2)(d) of NI 81-102 to permit the continuing funds to use the performance data of the existing funds in sales communications and reports to securityholders – Exemption from section 4.4 of NI 81-106 and Items 3.1(1), 3.1(7), 3.1(8), 4.1(1), 4.1(2), 4.2(2) and 4.3(1)(a) of Part B of Form 81-106F1 and Item 3(1) and 4 of Part C of Form 81-106F1 to permit the continuing funds to include in their annual and interim management reports of fund performance the financial highlights’ and past performance of the existing funds – continuing funds granted relief from seed capital requirements in section 3.1 of NI 81-102.
Applicable Legislative Provisions
National Instrument 81-101 Mutual Fund Prospectus Disclosure, s. 6.1 National Instrument 81-102 Mutual Funds, s. 19.1 National Instrument 81-106 Investment Fund Continuous Disclosure, s.17.1
December 10, 2013
IN THE MATTER OF THE SECURITIES LEGISLATION OF ONTARIO (the Jurisdiction)
AND
IN THE MATTER OF THE PROCESS FOR EXEMPTIVE RELIEF APPLICATIONS IN MULTIPLE JURISDICTIONS
AND
IN THE MATTER OF BMO NESBITT BURNS INC.
BMO INVESTMENTS INC. (collectively, the Filers)
AND
BMO NESBITT BURNS CANADIAN STOCK SELECTION FUND BMO NESBITT BURNS INTERNATIONAL EQUITY FUND
BMO CANADIAN STOCK SELECTION FUND
BMO INTERNATIONAL VALUE FUND (collectively, the Funds)
Decision
BACKGROUND
- The principal regulator in the Jurisdiction (the Decision Maker) has received an application from the Filers for a decision under the securities legislation of the Jurisdiction of the principal regulator (the Legislation):
(a) for an exemption from
(i) section 2.1 of National Instrument 81-101 Mutual Fund Prospectus Disclosure (NI 81-101) for the purposes of the exemption sought from Form 81-101F1 – Contents of Simplified Prospectus (Form 81-101F1) and for the purposes of the exemption sought from Form 81-101F3 – Contents of Fund Facts Document (Form 81-101F3);
(ii) sections 15.3(2), 15.6(a)(i), 15.6(b), 15.6(d), 15.8(2)(a), 15.8(3)(a) and 15.9(2)(d) of National Instrument 81-102 Mutual Funds (NI 81-102) to permit the BMO Canadian Stock Selection Fund and BMO International Value Fund (collectively, the Continuing Funds) to use performance data of the BMO Nesbitt Burns Canadian Stock Selection Fund and BMO Nesbitt Burns International Equity Fund (collectively, the Existing Funds) in sales communications and other communications to securityholders (collectively, the Fund Communications);
(iii) item 5(b) of Part B of Form 81-101F1 to permit the Continuing Funds to disclose the Start Dates of the Existing Funds as their respective Start Dates in the simplified prospectus;
(iv) item 2 of Part 1 of Form 81-101F3 to permit the Continuing Funds to disclose the Date Fund Created dates of the respective Existing Funds as their Date Fund Created dates in the fund facts documents;
(v) item 4 of Part 1 of Form 81-101F3 to permit the Continuing Funds to use performance data of the respective Existing Funds in the Average Return and Year-by-Year Returns in the fund facts documents; and
(vi) item 13.2 of Part B of Form 81-101F1 to permit the Continuing Funds to use performance data of the respective Existing Funds in the Fund Expenses Indirectly Borne by Investors in the simplified prospectus,
(collectively, the Past Performance Relief), and,
(b) section 3.1 of NI 81-102 (the Seed Capital Relief and together with the Past Performance Relief, the Requested Relief) to permit the filing of a simplified prospectus for the Continuing Funds notwithstanding that the initial investment required in respect of each Continuing Fund under section 3.1 of NI 81-102 will not be provided.
- Under the Process for Exemptive Relief Applications in Multiple Jurisdictions (for a passport application):
(a) The Ontario Securities Commission is the principal regulator for this application; and
(b) The Filers have provided notice that section 4.7(1) of Multilateral Instrument 11-102 Passport System is intended to be relied upon in each of the other provinces and territories of Canada.
II. INTERPRETATION
Terms defined in National Instrument 14-101 Definitions have the same meaning if used in this decision, unless otherwise defined.
III. REPRESENTATIONS
The Filers and the Funds
The head office of each of the Filers is located in Toronto, Ontario.
The Filers are not in default of securities legislation in any jurisdiction in Canada.
The Filers are each corporations governed under the laws of Canada, and are registered as investment fund managers in Ontario, Quebec and Newfoundland and Labrador. The Filers are both indirect wholly-owned subsidiaries of Bank of Montreal.
BMO Nesbitt Burns Inc. (BMONB) is the manager of certain mutual funds known as the “BMO Nesbitt Burns Group of Funds”, which include the Existing Funds. Units of the Existing Funds are currently qualified for sale in each of the provinces and territories of Canada pursuant to a simplified prospectus dated October 23, 2012 as amended by amendment no. 1 dated August 30, 2013 and amendment no. 2 dated September 27, 2013, and an annual information form dated October 23, 2012, as amended by amendment no. 1 dated August 30, 2013 and amendment no. 2 dated September 27, 2013. On October 17, 2013, BMONB was granted an exemption which extended the time limits pertaining to filing the renewal prospectus for the Existing Funds to December 17, 2013.
BMO