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Securities Law

NIN 96/17 - Blanket Order #96/11 - Mutual Funds and Related Party Transactions [NIN - Rescinded]

Published Date: 1996-05-31
Effective Date: 1996-05-29
The Commission is issuing Blanket Order #96/11. BOR#96/11 extends the period for transitional relief provided under BOR#96/6 with respect to section 110.1 of the Securities Act. This notice provides background to the issuance of the BOR#96/11.

Section 110.1 prohibits certain related party transactions between mutual funds and responsible persons, including purchases and sales of securities from or to the account of a responsible person. Although section 110.1 became effective January 1, 1996, BOR#95/8 and BOR#96/6 provided transitional relief to allow time for the mutual fund industry to become aware of the new prohibitions and the relief under BOR#95/13 and BOR#96/5. BOR#95/13 and BOR#96/5 provide relief from section 110.1(1)(b) to permit principal transactions between mutual funds and responsible persons with respect to certain debt securities and mortgages, respectively.

Under NIN#95/58, the Commission indicated its intention to consider comments on the relief provided under BOR#95/13. Comments have been received on the pricing requirements set out in BOR#95/13. To allow staff time to consider the comments fully, BOR#96/11 is being issued to extend the transitional relief for an additional three months.

DATED at Vancouver, British Columbia, on May 29, 1996.

Douglas M. Hyndman

REF: BOR#95/8