Securities Law

BCN 2003/03 - BC Instrument 81-506 - Exemption for mutual funds from delivering financial statements [BCN - Rescinded]

Published Date: 2003-01-22
Effective Date: 2003-01-22

Introduction
Effective January 22, 2003, the Commission has made BC Instrument 81-506 Exemption for mutual funds from delivering financial statements. 

Substance and Purpose
The Commission recently granted relief on application to some mutual funds from the requirement to deliver financial statements to all security holders.  In this instrument, we give similar relief to all mutual funds in British Columbia.  (The term “mutual fund in British Columbia” means a mutual fund organized under British Columbia law or a mutual fund that is a reporting issuer in British Columbia). The relief is from the delivery requirements for both annual and interim financial statements.  Both the discretionary relief and the instrument are consistent with the approach in proposed National Instrument 81-106 Investment Fund Continuous Disclosure. 

The relief is subject to the mutual fund’s manager sending an annual notice to security holders telling them they will only get annual or interim financial statements if they request them. When sending the notice to indirect security holders, the mutual fund may need to consider the requirements in National Instrument 54-101 Communication with Beneficial Owners of Securities of a Reporting Issuer.

We expect to revoke this instrument when NI 81-106 is effective.

Questions
If you have any questions, please contact:

Noreen Bent
Manager and Senior Legal Counsel
Legal and Market Initiatives
British Columbia Securities Commission
Tel:  (604) 899-6741 or 1-800-373-6393 (in BC and Alberta)
Fax: (604) 899-6814
E-mail:  nbent@bcsc.bc.ca

 

January 22, 2003

 


Douglas M. Hyndman
Chair


Ref:

This Notice may refer to other documents. These documents can be found at the B.C. Securities Commission public website at www.bcsc.bc.ca in the Commission Documents database or the Historical Documents database.