Blackrock Asset Management Canada Limited (Re), 2023 CanLII 12667

February 23, 2023

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 BLACKROCK ASSET MANAGEMENT CANADA LIMITED (the Filer)

AND

THE EXCHANGE-TRADED MUTUAL FUNDS SET OUT IN SCHEDULE “A” (collectively, the ETFs)

DECISION

Background

The principal regulator in the Jurisdiction has received an application from the Filer on behalf of the ETFs for a decision under the securities legislation of the Jurisdiction (the Legislation) that the time limits for the renewal of the prospectus of the ETFs dated April 13, 2022 be extended to those time limits that would apply if the lapse date of the prospectus of the ETFs was June 29, 2023 (the Requested Relief).

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 Filer has provided notice that subsection 4.7(1) of Multilateral Instrument 11-102 – Passport System (MI 11-102) is intended to be relied upon in each of the other provinces and territories of Canada (together with Ontario, the Jurisdictions).

Interpretation

Terms defined in National Instrument 14-101 – Definitions and MI 11-102 have the same meaning if used in this decision, unless otherwise defined.

Representations

This decision is based on the following facts represented by the Filer:

1. The Filer is a corporation amalgamated under the laws of Ontario, with its head office located in Toronto, Ontario.

2. The Filer is registered as: (i) an investment fund manager in each of the Jurisdictions; (ii) a commodity trading manager in Ontario; (iii) an adviser in Manitoba; (iv) a portfolio manager in each of the Jurisdictions; and (v) an exempt market dealer in each of the Jurisdictions.

3. The Filer is the investment fund manager and trustee of the ETFs.

4. Neither the Filer nor any of the ETFs are in default of securities legislation in any of the Jurisdictions.

5. Each ETF is an exchange-traded mutual fund established as a trust under the laws of Ontario and a reporting issuer in each of the Jurisdictions.

6. Securities of each ETF are currently qualified for distribution in each of the Jurisdictions under the long form prospectus dated April 13, 2022 (the Current Prospectus).

7. Each ETF is in continuous distribution and the securities of each ETF are listed on the Toronto Stock Exchange or another marketplace in Canada.

8. The lapse date for the Current Prospectus under the Legislation is April 13, 2023 (the Current Lapse Date).

9. In addition to the ETFs, the Filer is the investment fund manager of certain other exchange-traded mutual funds (the iShares Funds, and together with the ETFs, the Funds) offered under a separate long form prospectus dated June 29, 2022, as amended (the iShares Funds Main Prospectus).

10. The lapse date for the iShares Funds Main Prospectus is June 29, 2023 (the iShares Funds Lapse Date).

11. Accordingly, under the Legislation, the distribution of securities of the ETFs would have to cease on the Current Lapse Date unless: (i) the ETFs file a pro forma prospectus at least 30 days prior to the Current Lapse Date; (ii) the final prospectus is filed no later than 10 days after the Current Lapse Date; and (iii) a receipt for the final prospectus is obtained within 20 days after the Current Lapse Date.

12. The Filer wishes to combine the Current Prospectus with the iShares Funds Main Prospectus in order to reduce renewal, printing, and related costs of the Funds. Offering both the ETFs and the iShares Funds under the same renewal prospectus would facilitate the distribution of the Funds in the Jurisdictions under the same prospectus and will ensure that the Filer can make the operational and administrative features of the Funds consistent with each other, if necessary.

13. The Filer desires to extend the Current Lapse Date of the Current Prospectus in order to move the renewal timeframe of the ETFs to a more administratively beneficial date. Establishing a uniform disclosure timeframe for the Funds will permit the Filer to streamline operations and disclosure across the Filer’s ETF platform.

14. If the Requested Relief is not granted, it will be necessary to renew two sets of prospectus documents for the ETFs twice within a short period of time in order to consolidate the Current Prospectus with the iShares Funds Main Prospectus and establish a uniform filing timeline for the Funds, and it would be unreasonable for the Filer to incur the costs and expenses associated therewith, given investors would not be prejudiced by the Requested Relief.

15. There have been no material changes in the affairs of the ETFs since the date of the Current Prospectus. Accordingly, the Current Prospectus and ETF Facts represent the accurate information regarding the ETFs.

16. Given the disclosure obligations of the Filer and the ETFs, should any material change occur, the Current Prospectus and current ETF Facts will be amended as required under the Legislation.

17. New investors of the ETFs will receive delivery of the most recently filed ETF Facts. The Current Prospectus of the ETFs will remain available to investors upon request.

18. The Requested Relief will not affect the accuracy of the information contained in the Current Prospectus or the respective ETF Facts and will therefore not be prejudicial to the public interest.

Decision

The principal regulator is satisfied that the decision meets the test set out in the Legislation for the principal regulator to make the decision.

The decision of the principal regulator under the Legislation is that the Requested Relief is granted.

“Darren McKall”

Darren McKall Manager, Investment Funds and Structured Products

Ontario Securities Commission

App. No. 2023/0076

SCHEDULE A

The ETFs

iShares Exponential Technologies Index ETF (“XEXP”)

iShares Global Clean Energy Index ETF (“XCLN”)

iShares Genomics Immunology and Healthcare Index ETF (“XDNA”)

iShares Cybersecurity and Tech Index ETF (“XHAK”)

SCHEDULE B

The iShares Funds

iShares Core Canadian Corporate Bond Index ETF (“XCB”)

iShares Core Canadian Government Bond Index ETF (“XGB”)

iShares Core Canadian Long Term Bond Index ETF (“XLB”)

iShares Core Canadian Short Term Bond Index ETF (“XSB”)

iShares Core Canadian Short Term Corporate Bond Index ETF (“XSH”)

iShares Core Canadian Universe Bond Index ETF (“XBB”)

iShares Core MSCI All Country World ex Canada Index ETF (“XAW” / “XAW.U”)¹

iShares Core MSCI Canadian Quality Dividend Index ETF (“XDIV”)

iShares Core MSCI EAFE IMI Index ETF (“XEF” / “XEF.U”)¹

iShares Core MSCI EAFE IMI Index ETF (CAD-Hedged) (“XFH”)

iShares Core MSCI Emerging Markets IMI Index ETF (“XEC” / “XEC.U”)¹

iShares Core MSCI Global Quality Dividend Index ETF (“XDG” / “XDG.U”)¹

iShares Core MSCI Global Quality Dividend Index ETF (CAD-Hedged) (“XDGH”)

iShares Core MSCI US Quality Dividend Index ETF (“XDU” / “XDU.U”)¹

iShares Core MSCI US Quality Dividend Index ETF (CAD-Hedged) (“XDUH”)

iShares Core S&P 500 Index ETF (“XUS” / “XUS.U”)¹

iShares Core S&P 500 Index ETF (CAD-Hedged) (“XSP”)

iShares Core S&P/TSX Capped Composite Index ETF (“XIC”)

iShares Core S&P U.S. Total Market Index ETF (“XUU” / “XUU.U”)¹

iShares Core S&P U.S. Total Market Index ETF (CAD-Hedged) (“XUH”)

iShares 0-5 Year TIPS Bond Index ETF (“XSTP” / “XSTP.U”)¹

iShares 0-5 Year TIPS Bond Index ETF (CAD-Hedged) (“XSTH”)

iShares 1-5 Year Laddered Corporate Bond Index ETF (“CBO”)

iShares 1-5 Year Laddered Government Bond Index ETF (“CLF”)

iShares 1-5 Year U.S. IG Corporate Bond Index ETF (“XSHU” / “XSHU.U”)¹

iShares 1-5 Year U.S. IG Corporate Bond Index ETF (CAD-Hedged) (“XIGS”)

iShares 1-10 Year Laddered Corporate Bond Index ETF (“CBH”)

iShares 1-10 Year Laddered Government Bond Index ETF (“CLG”)

iShares Canadian Fundamental Index ETF (“CRQ”)

iShares Canadian Growth Index ETF (“XCG”)

iShares Canadian HYBrid Corporate Bond Index ETF (“XHB”)

iShares Canadian Real Return Bond Index ETF (“XRB”)

iShares Canadian Select Dividend Index ETF (“XDV”)

iShares Canadian Value Index ETF (“XCV”)

iShares China Index ETF (“XCH”)

iShares Convertible Bond Index ETF (“CVD”)

iShares Emerging Markets Fundamental Index ETF (“CWO”)

iShares ESG Advanced 1-5 Year Canadian Corporate Bond Index ETF (“XSHG”)

iShares ESG Advanced Canadian Corporate Bond Index ETF (“XCBG”)

iShares ESG Advanced MSCI Canada Index ETF (“XCSR”)

iShares ESG Advanced MSCI EAFE Index ETF (“XDSR”)

iShares ESG Advanced MSCI USA Index ETF (“XUSR”)

iShares ESG Aware Canadian Aggregate Bond Index ETF (“XSAB”)

iShares ESG Aware Canadian Short Term Bond Index ETF (“XSTB”)

iShares ESG Aware MSCI Canada Index ETF (“XESG”)

iShares ESG Aware MSCI EAFE Index ETF (“XSEA”)

iShares ESG Aware MSCI Emerging Markets Index ETF (“XSEM”)

iShares ESG Aware MSCI USA Index ETF (“XSUS”)

iShares ESG MSCI Canada Leaders Index ETF (“XCLR”)

iShares ESG MSCI EAFE Leaders Index ETF (“XDLR”)

iShares ESG MSCI USA Leaders Index ETF (“XULR”)

iShares Floating Rate Index ETF (“XFR”)

iShares Global Agriculture Index ETF (“COW”)

iShares Global Government Bond Index ETF (CAD-Hedged) (“XGGB”)

iShares Global Healthcare Index ETF (CAD-Hedged) (“XHC”)

iShares Global Infrastructure Index ETF (“CIF”)

iShares Global Monthly Dividend Index ETF (CAD-Hedged) (“CYH”)

iShares Global Real Estate Index ETF (“CGR”)

iShares Global Water Index ETF (“CWW”)

iShares High Quality Canadian Bond Index ETF (“XQB”)²

iShares India Index ETF (“XID”)

iShares International Fundamental Index ETF (“CIE”)

iShares J.P. Morgan USD Emerging Markets Bond Index ETF (CAD-Hedged) (“XEB”)

iShares Jantzi Social Index ETF (“XEN”)

iShares Japan Fundamental Index ETF (CAD-Hedged) (“CJP”)

iShares MSCI EAFE Index ETF (CAD-Hedged) (“XIN”)

iShares MSCI Emerging Markets Index ETF (“XEM”)

iShares MSCI Europe IMI Index ETF (“XEU”)

iShares MSCI Europe IMI Index ETF (CAD-Hedged) (“XEH”)

iShares MSCI Min Vol Canada Index ETF (“XMV”)

iShares MSCI Min Vol EAFE Index ETF (“XMI”)

iShares MSCI Min Vol EAFE Index ETF (CAD-Hedged) (“XML”)

iShares MSCI Min Vol Emerging Markets Index ETF (“XMM”)

iShares MSCI Min Vol Global Index ETF (“XMW”)

iShares MSCI Min Vol Global Index ETF (CAD-Hedged) (“XMY”)

iShares MSCI Min Vol USA Index ETF (“XMU” / “XMU.U”)¹

iShares MSCI Min Vol USA Index ETF (CAD-Hedged) (“XMS”)

iShares MSCI Multifactor Canada Index ETF (“XFC”)

iShares MSCI Multifactor EAFE Index ETF (“XFI”)

iShares MSCI Multifactor EAFE Index ETF (CAD-Hedged) (“XFF”)

iShares MSCI Multifactor USA Index ETF (“XFS” / “XFS.U”)¹

iShares MSCI Multifactor USA Index ETF (CAD-Hedged) (“XFA”)

iShares MSCI USA Momentum Factor Index ETF (“XMTM”)

iShares MSCI USA Quality Factor Index ETF (“XQLT”)

iShares MSCI USA Value Factor Index ETF (“XVLU”)

iShares MSCI World Index ETF (“XWD”)

iShares NASDAQ 100 Index ETF (CAD-Hedged) (“XQQ”)

iShares S&P Global Consumer Discretionary Index ETF (CAD-Hedged) (“XCD”)

iShares S&P Global Industrials Index ETF (CAD-Hedged) (“XGI”)

iShares S&P/TSX 60 Index ETF (“XIU”)

iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (“CDZ”)

iShares S&P/TSX Canadian Preferred Share Index ETF (“CPD”)

iShares S&P/TSX Capped Consumer Staples Index ETF (“XST”)

iShares S&P/TSX Capped Energy Index ETF (“XEG”)

iShares S&P/TSX Capped Financials Index ETF (“XFN”)

iShares S&P/TSX Capped Information Technology Index ETF (“XIT”)

iShares S&P/TSX Capped Materials Index ETF (“XMA”)

iShares S&P/TSX Capped REIT Index ETF (“XRE”)

iShares S&P/TSX Capped Utilities Index ETF (“XUT”)

iShares S&P/TSX Completion Index ETF (“XMD”)

iShares S&P/TSX Composite High Dividend Index ETF (“XEI”)

iShares S&P/TSX Global Base Metals Index ETF (“XBM”)

iShares S&P/TSX Global Gold Index ETF (“XGD”)

iShares S&P/TSX North American Preferred Stock Index ETF (CAD-Hedged) (“XPF”)

iShares S&P/TSX SmallCap Index ETF (“XCS”)

iShares S&P U.S. Mid-Cap Index ETF (“XMC” / “XMC.U”)¹

iShares S&P U.S. Mid-Cap Index ETF (CAD-Hedged) (“XMH”)

iShares S&P U.S. Small-Cap Index ETF (“XSMC”)

iShares S&P U.S. Small-Cap Index ETF (CAD-Hedged) (“XSMH”)

iShares Short Term High Quality Canadian Bond Index ETF (“XSQ”)³

iShares US Dividend Growers Index ETF (CAD-Hedged) (“CUD”)

iShares US Fundamental Index ETF (“CLU” / “CLU.C”)⁴

iShares U.S. Aggregate Bond Index ETF (“XAGG” / “XAGG.U”)¹

iShares U.S. Aggregate Bond Index ETF (CAD-Hedged) (“XAGH”)

iShares U.S. High Dividend Equity Index ETF (“XHU”)

iShares U.S. High Dividend Equity Index ETF (CAD-Hedged) (“XHD”)

iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (“XHY”)

iShares U.S. High Yield Fixed Income Index ETF (CAD-Hedged) (“CHB”)⁵

iShares U.S. IG Corporate Bond Index ETF (“XCBU” / “XCBU.U”)¹

iShares U.S. IG Corporate Bond Index ETF (CAD-Hedged) (“XIG”)

iShares U.S. Small Cap Index ETF (CAD-Hedged) (“XSU”)

iShares Core Balanced ETF Portfolio (“XBAL”)

iShares Core Conservative Balanced ETF Portfolio (“XCNS”)

iShares Core Equity ETF Portfolio (“XEQT”)

iShares Core Growth ETF Portfolio (“XGRO”)

iShares Core Income Balanced ETF Portfolio (“XINC”)

iShares ESG Balanced ETF Portfolio (“GBAL”)

iShares ESG Conservative Balanced ETF Portfolio (“GCNS”)

iShares ESG Equity ETF Portfolio (“GEQT”)

iShares ESG Growth ETF Portfolio (“GGRO”)

iShares Short Term Strategic Fixed Income ETF (“XSI”)

iShares Conservative Short Term Strategic Fixed Income ETF (“XSC”)

iShares Conservative Strategic Fixed Income ETF (“XSE”)

iShares Canadian Financial Monthly Income ETF (“FIE”)

iShares Diversified Monthly Income ETF (“XTR”)

iShares Equal Weight Banc & Lifeco ETF (“CEW”)

iShares Premium Money Market ETF (“CMR”)

Footnotes

1. 1This iShares Fund offers USD Units.
2. 2The Filer has proposed to merge this iShares Fund into iShares Core Canadian Universe Bond Index ETF (“XBB”) on or about March 24, 2023, subject to applicable stock exchange and unitholder approvals.
3. 3The Filer has proposed to merge this iShares Fund into iShares Core Canadian Short Term Bond Index ETF (“XSB”) on or about March 24, 2023, subject to applicable stock exchange and unitholder approvals.
4. 4This iShares Fund offers Hedged Units and Non-Hedged Units.
5. 5The Filer has proposed to merge this iShares Fund into iShares U.S. High Yield Bond Index ETF (CAD Hedged) (“XHY”) on or about March 24, 2023, subject to applicable stock exchange and unitholder approvals.