BOR 91/10 - First Renewal Prospectuses Filed by Mutual Funds Under National Policy Statement No. 36 [Rescinded]

IN THE MATTER OF THE SECURITIES ACT S.B.C. 1985, c.83 AND

IN THE MATTER OF FIRST RENEWAL PROSPECTUSES FILED BY MUTUAL FUNDS UNDER NATIONAL POLICY STATEMENT NO. 36

Exemption Order Under Section 59

WHEREAS the lapse date for a prospectus (the "First Prospectus") filed by a mutual fund under section 42 of the Securities Act, S.B.C. 1985, c. 83 (the "Act") is calculated by reference to the date of the receipt for the preliminary prospectus, in accordance with section 51(2)(a) of the Act (the "Earlier Lapse Date");

AND WHEREAS the documents that comprise the simplified prospectus disclosure system set out in National Policy Statement No. 36 ("NPS 36") include the most recent annual audited financial statements and any subsequent financial statements that are required to be filed during the currency of the annual information form by a mutual fund using the simplified prospectus disclosure system in NPS 36 (a "NPS 36 Mutual Fund");

AND WHEREAS copies of the most recent annual audited financial statements and any subsequent financial statements of a NPS 36 Mutual Fund that have been filed with any securities regulatory authority in Canada must accompany, and form part of, the prospectus of the NPS 36 Mutual Fund;

AND WHEREAS, because current financial statements form part of the prospectus of a NPS 36 Mutual Fund, the Commission considers that it is appropriate for the lapse date of the First Prospectus of a NPS 36 Mutual Fund to be calculated by reference to the date of the First Prospectus;

AND WHEREAS the Commission considers that to do so would not be prejudicial to the public interest;

IT IS ORDERED under section 59 of the Act that section 42 of the Act does not apply to a trade in a security by a NPS 36 Mutual Fund after the Earlier Lapse Date, provided that the trade is made in compliance with section 42 of the Act, except for the requirement contained in section 51(2) of the Act, and provided that

(a) for the purposes of section 51(4) and (5) of the Act, "lapse date" means the date 12 months from the date of the First Prospectus (the "Later Lapse Date"), and

(b) the NPS 36 Mutual Fund does not distribute a security under the First Prospectus after the Later Lapse Date, except in compliance with section 51(4) of the Act.

DATED at Vancouver, British Columbia, on August 8, 1991.