Exemption Orders (Discretionary)
CIBC SECURITIES INC.
2001 BCSECCOM 802
Headnote
Mutual Reliance Review System for Exemptive Relief Applications – Relief granted from the requirement to file an application to become a member of the Mutual Fund Dealers Association by the prescribed deadline in order to give the registrant time to complete a reorganization of its mutual fund operations, subject to certain conditions.
Applicable British Columbia Provisions
Securities Act, R.S.B.C. 1996, c. 418, s. 48
Securities Rules, B.C. Reg 194/97, s. 6(4)
IN THE MATTER OF THE SECURITIES LEGISLATION OF ONTARIO, BRITISH COLUMBIA, SASKATCHEWAN AND ALBERTA
AND
IN THE MATTER OF THE MUTUAL RELIANCE REVIEW SYSTEM FOR EXEMPTIVE RELIEF APPLICATIONS
AND
IN THE MATTER OF CIBC SECURITIES INC.
MRRS DECISION DOCUMENT
WHEREAS the local securities regulatory authority or regulator (the “Decision Maker”) in each of Ontario, British Columbia, Saskatchewan and Alberta (the “Jurisdictions”) has received an application from CIBC Securities Inc. (“CIBC SI” or the “Applicant”) for a decision pursuant to the securities legislation and other regulatory requirements of the Jurisdictions (the “Legislation”) that the Applicant be exempt from the requirement contained in the Legislation to submit an application for membership with the Mutual Fund Dealers Association of Canada (“MFDA”) on or before the date specified in the Legislation of each Jurisdiction (the “MFDA Membership Requirement”);
AND WHEREAS pursuant to the Mutual Reliance Review System for Exemptive Relief Applications (the “System”), the Ontario Securities Commission is the Principal Regulator for this application;
AND WHEREAS the Applicant has represented to the Decision Makers that:
1. The Applicant currently acts as the principal distributor as well as the manager and trustee of three families of mutual funds that are known, respectively, as the “CIBC Mutual Funds”, the “Imperial Pools” and the “CIBC Protected Funds” (collectively referred to herein as the “Mutual Funds”).
2. The Applicant has determined to effect a reorganization of the governance structure of the Mutual Funds that is expected to take effect on June 30, 2001. As part of the reorganization process, the Applicant will be voluntarily wound up on or about June 30, 2001.
3. A new company (“Newco”) will obtain registration as a mutual fund dealer from the securities regulatory authorities in all the applicable provinces and territories of Canada and take over the Applicant’s function as principal distributor of the Mutual Funds on or about June 30, 2001. Newco will also file its application for membership together with the prescribed fees with the MFDA in accordance with the legislative and regulatory requirements in each Jurisdiction.
AND WHEREAS, pursuant to the System, this MRRS Decision Document evidences the decision of each Decision Maker (collectively, the “Decision”);
AND WHEREAS each of the Decision Makers is satisfied that the Decision would not be prejudicial to the public interest;
IT IS THE DECISION of the Decision Makers pursuant to the Legislation that, effective May 23, 2001, the MFDA Membership Requirement shall not apply to the Applicant.
DATED this 30th day of May, 2001.
William R. Gazzard
Manager, Capital Markets
Ontario Securities Commission