81-101 - Mutual Fund Prospectus Disclosure Amendments to Form 81-101F1 Contents of Simplified Prospectus and Form 81-101F2 Contents of Annual Information Form [NI Amendment Proposed - Lapsed]

PART 1 AMENDMENTS TO FORM 81-101F1

1.1 Amendments to Form 81-101F1

(1) Item 7 of Part B of Form 81-101F1 is amended by the addition of the following as subsection (8):

“(8) If the mutual fund funds intends to enter into securities lending, repurchase or reverse repurchase transactions under sections 2.12, 2.13 or 2.14 of National Instrument 81-102

(a) state that the mutual fund may enter into securities lending, repurchase or reverse repurchase transactions; and

(b) briefly describe

(i) how those transactions are or will be entered into in conjunction with other strategies and investments of the mutual fund to achieve the mutual fund’s investment objectives;

(ii) the types of those transactions to be entered into and give a brief description of the nature of each type, and

(iii) the limits of the mutual fund’s entering into of those transactions.”.

(2) Item 9 of Part B of Form 81-101F1 is amended by the addition of the following as Instruction (6) to that Item:

“(6) If the mutual fund is to enter into securities lending, repurchase or reverse repurchase transactions, describe the risks associated with the mutual fund entering into those transactions.”.

PART 2 AMENDMENTS TO FORM 81-101F2

2.1 Amendments to Form 81-101F2 - Item 12 of Form 81-101F2 is amended by the addition of the following as subsections (4) and (5)

“(4) If the mutual fund intends to enter into securities lending, repurchase or reverse repurchase transactions, describe the policies and practices of the mutual fund to manage the risks associated with those transactions.

(5) In the disclosure provided under subsection (4), include disclosure of

(a) the involvement of an agent to administer the transactions on behalf of the mutual fund, and the details of the instructions provided by the mutual fund to the agent under the agreement between the mutual fund and the agent;

(b) whether there are written policies and procedures in place that set out the objectives and goals for securities lending, repurchase transactions or reverse repurchase transactions, and the risk management procedures applicable to the mutual fund’s entering into of those transactions;

(c) who is responsible for setting and reviewing the agreement referred to in paragraph (a) and the policies and procedures referred to in paragraph (b), how often are the policies and procedures reviewed, and the extent and nature of the involvement of the board of directors or trustee in the risk management process;

(d) whether there are limits or other controls in place on the entering into of those transactions by the mutual fund and who is responsible for authorizing those limits or other controls on those transactions;

(e) whether there are individuals or groups that monitor the risks independent of those who enter into those transactions on behalf of the mutual fund; and

(f) whether risk measurement procedures or simulations are used to test the portfolio under stress conditions.”.