Exemption Orders (Discretionary)
HSBC CANADIAN MONEY MARKET FUND
Headnote
Mutual Reliance Review System for Exemptive Relief Applications - application for mutual fund lapse date extension.
Applicable British Columbia Provisions
Securities Act, R.S.B.C. 1996, c.418, s. 70
Securities Rules, R.B.C. Reg. 194/97, s. 121, 122, 123 and 124.
IN THE MATTER OF
THE SECURITIES LEGISLATION OF
BRITISH COLUMBIA, ALBERTA, SASKATCHEWAN,
MANITOBA, ONTARIO, QUÉBEC, NEW BRUNSWICK,
NOVA SCOTIA AND NEWFOUNDLAND
AND
IN THE MATTER OF
THE MUTUAL RELIANCE SYSTEM FOR
EXEMPTIVE RELIEF APPLICATIONS
AND
IN THE MATTER OF
HSBC CANADIAN MONEY MARKET FUND
HSBC U.S. DOLLAR MONEY MARKET FUND
HSBC MORTGAGE FUND
HSBC CANADIAN BOND FUND
HSBC WORLD BOND FUND
HSBC CANADIAN BALANCED FUND
HSBC DIVIDEND INCOME FUND
HSBC EQUITY FUND
HSBC SMALL CAP GROWTH FUND
HSBC GLOBAL EQUITY FUND
HSBC U.S. EQUITY FUND
HSBC EUROPEAN FUND
HSBC ASIAPACIFIC FUND
HSBC EMERGING MARKETS FUND
(individually a “Fund” and collectively, the “Funds”)
MRRS DECISION DOCUMENT
THE SECURITIES LEGISLATION OF
BRITISH COLUMBIA, ALBERTA, SASKATCHEWAN,
MANITOBA, ONTARIO, QUÉBEC, NEW BRUNSWICK,
NOVA SCOTIA AND NEWFOUNDLAND
AND
IN THE MATTER OF
THE MUTUAL RELIANCE SYSTEM FOR
EXEMPTIVE RELIEF APPLICATIONS
AND
IN THE MATTER OF
HSBC CANADIAN MONEY MARKET FUND
HSBC U.S. DOLLAR MONEY MARKET FUND
HSBC MORTGAGE FUND
HSBC CANADIAN BOND FUND
HSBC WORLD BOND FUND
HSBC CANADIAN BALANCED FUND
HSBC DIVIDEND INCOME FUND
HSBC EQUITY FUND
HSBC SMALL CAP GROWTH FUND
HSBC GLOBAL EQUITY FUND
HSBC U.S. EQUITY FUND
HSBC EUROPEAN FUND
HSBC ASIAPACIFIC FUND
HSBC EMERGING MARKETS FUND
(individually a “Fund” and collectively, the “Funds”)
MRRS DECISION DOCUMENT
WHEREAS the Canadian securities regulatory authority or regulator (the “Decision Maker”) in each of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Québec, New Brunswick, Nova Scotia and Newfoundland (the “Jurisdictions”) has received an application from HSBC Investment Funds (Canada) Inc. (“HIFC”) in its capacity as manager of each Fund, for a decision pursuant to the securities legislation of the Jurisdictions (the “Legislation”) that the lapse date of each Fund be extended to December 15, 1999;
AND WHEREAS pursuant to the Mutual Reliance Review System for Exemptive Relief Applications (the “System”), the British Columbia Securities Commission is the Principal Jurisdiction for this application;
AND WHEREAS HIFC has represented to the Decision Makers that:
1. HIFC is the manager-trustee, principal distributor and promoter of the Funds and is a wholly-owned subsidiary of HSBC Asset Management (Canada) Inc. (“HAMC”). HAMC is a wholly-owned subsidiary of the HSBC Bank Canada, a Schedule II chartered bank under the Bank Act (Canada).
2. HIFC is registered under the Legislation as a dealer in the category of mutual fund dealer.
3. The Funds currently comprise 14 open-end mutual fund trusts, each of which was established under the laws of British Columbia or Ontario pursuant to a separate declaration of trust and each of which is qualified for distribution in the Jurisdictions by means of a simplified prospectus and annual information form.
4. Pursuant to the Legislation, the lapse date for each Fund under a prospectus and annual information form dated October 30, 1998 (the “1998 Prospectus”) is November 2, 1999 in Ontario and October 30, 1999 in all of the other Jurisdictions.
5. Each Fund is a reporting issuer in each of the Jurisdictions and is not in default of any of the requirements of the Legislation.
6. HIFC proposes to establish two new mutual funds, the HSBC Global Equity RSP Fund and the HSBC U.S. Equity RSP Fund (together, the “RSP Funds”), each of which will be an open-end mutual fund trust established under the laws of British Columbia and each of which will be qualified for distribution in the Jurisdictions by means of the simplified prospectus and annual information form for the Funds.
7. A preliminary and pro-forma simplified prospectus and annual information form (the “1999 Prospectus”) for the Funds and the RSP Funds were filed with the Decision Makers on August 12, 1999. The 1999 Prospectus was “preliminary” with respect to the RSP Funds and “pro-forma” with respect to the Funds.
8. HIFC wishes to combine disclosure regarding the RSP Funds with disclosure regarding the Funds (the RSP Funds and the Funds being collectively referred to herein as the “HSBC Mutual Fund Group”). In this way, a single simplified prospectus and annual information form may be filed in respect of all of the mutual funds in the HSBC Mutual Fund Group.
9. It is not certain that all comments with respect to the RSP Funds will be settled by the lapse date, particularly comments with respect to applications made by the RSP Funds to deviate from certain provisions of the Legislation and from the provisions of National Policy Statement No. 39 (collectively, the “Applications”).
10. The extension is sought to permit the RSP Funds to settle any remaining comments with respect to the Applications and related matters in respect of the establishment of the RSP Funds.
11. There has been no material change in the affairs of the Funds since the date of the 1998 Prospectus.
12. Without the requested Decision, in order to continue the distribution of securities of the Funds, the Funds must file with the Decision Makers a final 1999 Prospectus by November 9, 1999 (November 12, 1999 in Ontario) and must obtain a receipt for the final 1999 Prospectus by November 19, 1999 (November 22, 1999 in Ontario) from each Decision Maker.
13. HIFC wishes to extend the time for obtaining a receipt for a renewal prospectus of the Funds to the time that would be applicable if the lapse date for distribution of securities of the Funds under the 1998 Prospectus were December 15, 1999.
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 test contained in the Legislation that provides the Decision Maker with the jurisdiction to make the Decision has been met;
THE DECISION of the Decision Makers pursuant to the Legislation is that the time limits provided by the Legislation for the filing of the final annual information form and final simplified prospectus for the Funds and the receipting thereof, in connection with the distribution of securities of the Funds under the 1998 Prospectus, are hereby extended to the times that would be applicable if the lapse date for the distribution of securities under the 1998 Prospectus was December 15, 1999.
- DATED at Vancouver, British Columbia on November 8, 1999.
- Wayne Redwick, C.G.A.
Director