NIN 90/04 - National Policy No. 39 - Mutual Funds Distributor's Report and Auditor's Letter [NIN - Rescinded]
| Published Date: | 1990-01-26 |
|---|---|
| Effective Date: | 1990-02-09 |
Attached is a distributor's report and an auditor's letter which will be acceptable to the CSA. Mutual fund distributors and their auditors should particularly note that the distributor's report does not recite all the individual requirements of sections 11 and 12 but rather requires reporting only of exceptions to those sections. When drafting the distributor's report, the CSA considered requiring a long-form report which would have required a specific comment on each requirement in the sections. For the time being, this is not being required; however, the CSA will be monitoring adherence to this policy and may subsequently require the filing of a long-form report.
When preparing the distributor's report and auditor's letter, particular attention should be paid to section 11.01 - Objectives since these objectives relate to requirements in all of sections 11 and 12. The completed report and letter should be sent to the Corporate Finance Department of the British Columbia Securities Commission.
The CSA have agreed that where a mutual fund distributor has reporting obligations to more than one jurisdiction and either the distributor's report has an exception or the auditor's letter is qualified, the mutual fund distributor must bring this matter to the attention of the principal jurisdiction (as would normally be selected when clearing documents as called for by National Policy No. 1). In such circumstances the distributor's report and the auditor's letter should have an additional paragraph specifying the prime jurisdiction selected. Normally, the other jurisdictions will accept the principal jurisdiction's resolution of the matter, although this procedure involves no surrender of jurisdiction by any regulatory authority.
DATED in Vancouver, British Columbia this 9th day of February 1990.
Chairman
Auditor's Letter
Date
To the appropriate securities regulatory authority(ies)
We have examined (name of Distributor)'s report on compliance with the applicable requirements of sections 11 and 12 of National Policy No. 39 during the year ended *, 19*. Our examination was designed in accordance with generally accepted auditing standards to seek reasonable assurance that the report of (name of Distributor) fairly presents its compliance with the applicable requirements of sections 11 and 12 of National Policy No. 39 and, accordingly, included such tests and other procedures as we considered necessary in the circumstances. Absolute assurance is not attainable because of such factors as the need for judgment, the use of testing, the inherent limitations of internal control, and because much of the evidence available to us is persuasive rather than conclusive in nature.
In our opinion, (name of Distributor)'s report on compliance with the applicable requirements of sections 11 and 12 of National Policy No. 39 during the year ended *, 19* is fairly presented in all material respects.
This letter is provided solely for the purpose of assisting the securities regulatory authority(ies) to which it is addressed in discharging its responsibilities and should not be relied upon for any other purpose.
Yours truly,
Chartered Accountants
Distributor's Report
To: The appropriate securities regulatory authority(ies)
From: Name of mutual fund or principal distributor of the mutual fund or participating dealer of the mutual fund, as the case may be (the "Distributor")
Re: Compliance Report on National Policy No. 39
For: Name(s) of the mutual funds (the "Funds")For the year ended *, 19*
Dear Sirs:
We, (name of Distributor) hereby confirm that we have complied with respect to the applicable requirements of sections 11 and 12 of National Policy No. 39 for the Funds for the year ended *, 19* (except as follows; list exceptions).
Signed on behalf of the Distributor
___________________________________
Signature
___________________________________
Name and office of the person
executing this report
___________________________________
Date