OSC 2019

The filers, managers of various exchange-traded funds (ETFs), applied to the Ontario Securities Commission for exemptive relief from the T+2 settlement requirements under National Instrument 81-102.

The relief was sought for ETFs that invest a portion of their portfolio assets in securities that customarily settle on a T+3 basis.

The Commission granted the exemption, allowing the funds to settle primary market trades in units within three business days, provided the funds have a portion of their portfolio invested in T+3 securities and disclose the settlement cycle in their prospectus.

The Issuer applied to the Ontario Securities Commission for a partial revocation of a failure-to-file cease trade order (FFCTO) issued in November 2019.

The Issuer sought the partial revocation to complete a $250,000 private placement financing of senior secured non-convertible debentures with related parties.

The proceeds of the financing were intended to be used to bring the Issuer's continuous disclosure record up to date, pay outstanding regulatory fees, and provide limited working capital.

The Commission granted the partial revocation order, subject to conditions including the dissemination of a press release and obtaining written acknowledgements from the financing participants that the securities remain subject to the FFCTO.

The applicants sought approval for a change of control of the investment fund manager resulting from its acquisition by a third party.

They also sought an abridgement of the 60-day notice period to securityholders to 30 days.

The Ontario Securities Commission granted both the approval and the abridgement relief, provided that no material changes are made to the management, operations, or portfolio management of the funds for at least 60 days following the delivery of the notice.

The Filer applied for exemptive relief under clause 5.5(1)(b) of National Instrument 81-102 to permit the reorganization of several exchange-traded funds into corresponding classes of shares of a new mutual fund corporation.

The relief was required because the reorganization did not meet all the criteria for a pre-approved reorganization under section 5.6(1), specifically regarding the wind-up of the existing funds and the delivery of certain documents.

The Principal Regulator granted the requested relief, subject to the condition that the Filer obtain prior securityholder approval for the reorganization of each fund.

The Filer applied on behalf of existing and future alternative mutual funds for exemptive relief from certain short selling restrictions in National Instrument 81-102.

Specifically, the Filer sought permission for the funds to short sell index participation units (IPUs) up to 100% of the fund's net asset value, exceeding the standard 10% single issuer and 50% aggregate limits.

The Ontario Securities Commission granted the requested relief, subject to conditions including that the aggregate market value of all securities sold short combined with cash borrowing does not exceed 100% of the fund's net asset value.

Telecom Italia S.p.A. applied to the Ontario Securities Commission for an order to cease being a reporting issuer in Canada.

The Filer demonstrated that Canadian residents hold a de minimis percentage of its securities and that its securities are not traded on any Canadian marketplace.

The Commission granted the order, noting that the Filer will continue to provide Canadian securityholders with the same disclosure required under Italian law.

The applicant, Franklin Templeton Investments Corp., applied for exemptive relief to extend the lapse dates of the simplified prospectuses for several of its mutual funds to June 30, 2020.

The extension was requested to consolidate the prospectuses and establish a uniform filing timeline across the applicant's fund platform, reducing renewal and printing costs.

The Ontario Securities Commission granted the requested relief, finding it would not be prejudicial to the public interest.

The Filer applied for exemptive relief on behalf of its mutual funds that offer both ETF and mutual fund securities.

The requested relief included exemptions from the long-form prospectus requirement for ETF securities, the underwriter's certificate requirement, and the take-over bid requirements for secondary market purchasers.

The Ontario Securities Commission granted the requested relief, allowing the funds to use a simplified prospectus and annual information form, and exempting them from the underwriter's certificate and take-over bid requirements.

The Filer, CI Investments Inc., applied for exemptive relief on behalf of several mutual funds to permit the filing of a single long-form prospectus for both exchange-traded fund (ETF) securities and mutual fund securities, rather than separate prospectuses.

The Filer also sought relief from the sales and redemption requirements of National Instrument 81-102 to treat the ETF and mutual fund securities as separate funds for compliance purposes.

The Ontario Securities Commission granted the requested exemptions, subject to conditions including specific disclosure requirements and compliance with applicable provisions for each type of security.

The Filer applied to the Ontario Securities Commission for exemptive relief to extend the lapse dates of the long form prospectuses for two exchange-traded funds.

The extension was requested to align the renewal dates with ten other funds managed by the Filer, thereby reducing renewal and printing costs.

The Commission granted the requested relief, finding it would not be prejudicial to the public interest.

The Filer, Dream Global Real Estate Investment Trust, applied to the Ontario Securities Commission for an order to cease being a reporting issuer in all applicable Canadian jurisdictions.

The Filer represented that its outstanding securities are beneficially owned by fewer than 15 securityholders in each Canadian jurisdiction and fewer than 51 worldwide, and that its securities are not traded on any marketplace.

The principal regulator granted the order, finding that the Filer met the test set out in the legislation.

CI Investments Inc. applied for exemptive relief on behalf of its existing and future mutual funds that offer both mutual fund securities and exchange-traded fund (ETF) securities.

The applicant sought an exemption from the requirement to file a long-form prospectus for the ETF securities, proposing instead to use a simplified prospectus.

The applicant also sought relief to treat the ETF and mutual fund securities as separate funds for the purpose of compliance with the sales and redemption requirements under National Instrument 81-102.

The Ontario Securities Commission granted the requested exemptions, subject to specific disclosure and compliance conditions.

The Filer applied to the Ontario Securities Commission for exemptive relief from the commingling prohibition in paragraph 11.1(1)(b) of National Instrument 81-102.

The Filer sought to temporarily commingle cash received for investment in its private equity funds with cash received for its mutual funds and exempt funds in the same trust accounts.

The Commission granted the requested relief, finding it would facilitate administrative economies without being detrimental to investor protection.

The Filer applied for exemptive relief on behalf of several alternative mutual funds to permit them to sell securities short such that the aggregate market value of all securities sold short, and the aggregate value of cash borrowed combined with the aggregate market value of all securities sold short, may exceed 50% of the net asset value of the Fund.

The Ontario Securities Commission granted the requested relief, subject to conditions including that the aggregate market value of all securities sold short does not exceed 100% of the Fund's NAV, and the aggregate value of cash borrowing does not exceed 50% of the Fund's NAV.

The applicant, BlackRock Asset Management Canada Limited, applied for exemptive relief to extend the lapse dates of the prospectuses for several of its exchange-traded mutual funds to a uniform date of June 30, 2020.

The extension was sought to consolidate the prospectuses, reduce renewal and printing costs, and streamline operations across the applicant's ETF platform.

The Ontario Securities Commission granted the requested relief, finding it would not prejudice the public interest.

The applicant sought exemptive relief from subsections 9.3(1) and 10.3(1) of National Instrument 81-102 to permit the Venator Income Fund to process purchase and redemption orders on a semi-monthly basis, rather than daily.

The Ontario Securities Commission granted the relief, subject to conditions requiring clear disclosure of the semi-monthly processing frequency in the fund's simplified prospectus and fund facts documents, and a statement that the fund is only suitable for investors who can accept this frequency.

The Filer, Tobias Lütke, applied to the Ontario Securities Commission for an exemption from the prospectus requirement to sell Class A Shares of Shopify Inc. under an automatic securities disposition plan (ASDP).

The Filer, deemed a control person, argued that complying with the prospectus exemption conditions for control trades would impede the ASDP's operation.

The Commission granted the exemption, subject to conditions including trading limits, reporting requirements, and restrictions on the Filer's involvement in the sales.

The Commission also granted confidentiality relief until the earlier of public disclosure of the ASDP or 60 days from the decision.

Lincluden Investment Management Limited applied to the Ontario Securities Commission for exemptive relief from the inter-fund trading prohibitions in National Instrument 81-102 and National Instrument 31-103.

The applicant sought permission for its public funds, pooled funds, and managed accounts to engage in inter-fund trades of debt securities and exchange-traded securities at the last sale price, and to permit in-specie subscriptions and redemptions between these entities.

The Commission granted the requested relief, subject to conditions including independent review committee approval, compliance with pricing requirements, and written client consent for managed accounts.

The Filer applied for exemptive relief on behalf of existing and future alternative mutual funds and mutual funds from certain provisions of National Instrument 81-102.

The requested relief would permit the alternative mutual funds to short sell government securities up to 300% of their net asset value, and permit the funds to deposit portfolio assets with a borrowing agent that is not the fund's custodian as security in connection with short sales, subject to certain limits.

The Ontario Securities Commission granted the requested short selling relief and custodial relief, subject to specified conditions.

The applicant, Karmin Exploration Inc., applied to the Ontario Securities Commission as principal regulator for an order declaring that it has ceased to be a reporting issuer in all applicable Canadian jurisdictions.

The applicant demonstrated that its outstanding securities are beneficially owned by fewer than 51 securityholders worldwide and are not traded on any marketplace.

The principal regulator was satisfied that the statutory test was met and granted the requested order.