Commission Approval of Amendment: Simplified Prospectus Qualification System for Mutual Funds [Including National Policy Statement No. 36 and National Policy Statement No. 39] - Notice of Amendment to Rule Under the Securities Act

Notice of Amendment

The Commission has, under section 143 of the Securities Act (the "Act"), amended the ruleentitled In the Matter of a Simplified Prospectus Qualification System for Mutual Funds(1997), 20 OSCB 1220 [including National Policy Statement No. 36 and National PolicyStatement No. 39] (the "Rule"). The amendment extends the expiration date of the Rulefrom July 1, 1999 to July 1, 2000. This amendment, however, does not materially changethe Rule and, accordingly, under section 143.2 of the Act, the Commission has notpublished the Rule for comment.

The amendment and the material required by the Act to be delivered to the Minister ofFinance were delivered on April 7, 1999. If the Minister does not approve the amendment,reject the amendment or return it to the Commission for further consideration, theamendment will come into force on June 21, 1999. If the Minister does approve theamendment, the amendment will come into force 15 days after it is approved.

Substance and Purpose of Amendment

The Rule replaced the deemed rule entitled In the Matter of a Simplified ProspectusQualification System for Mutual Funds (1984), 7 OSCB 5333 [including National PolicyStatement No. 36 (1984), 7 OSCB 5355 and National Policy Statement No. 39 (1992), 15OSCB 5645].

The Rule provides that it expires on the earlier of the date on which a new rule intendedto replace it comes into force and July 1, 1999. Proposed National Instrument 81-101Mutual Fund Prospectus Disclosure and proposed Companion Policy 81-101CP, which areintended to replace National Policy Statement No. 36, were published for comment on July31, 1998 ((1998), 21 OSCB 4793) and will be republished for further comment shortly.Proposed National Instrument 81-102 Mutual Funds and proposed Companion Policy 81-102CP, which are intended to replace National Policy Statement No. 39, were publishedfor comment on June 27, 1997 ((1997), 20 OSCB (Supp.2)3) and were republished forfurther comment on March 19, 1999 ((1999), 22 OSCB (Supp)). The purpose of theamendment is to extend the expiration date of the Rule from July 1, 1999 to July 1, 2000in order to permit (1) the statutorily required republication for comment of proposedNational Instrument 81-101 Mutual Fund Prospectus Disclosure and proposed CompanionPolicy 81-101CP; (2) the consideration of comments received in response to therepublication of proposed National Instrument 81-101 Mutual Fund Prospectus Disclosureand proposed Companion Policy 81-101CP and proposed National Instrument 81-102Mutual Funds and proposed Companion Policy 81-102CP by the Commission and its staff;and (3) the review of those instruments by the Minister.

Text of Amendment

The text of the amendment follows.

DATED: April 9, 1999.

1.1 Amendment - The Rule entitled In the Matter of a Simplified ProspectusQualification System for Mutual Funds [including National Policy Statement No. 36and National Policy Statement No. 39] is amended by deleting "July 1, 1999" in thelast sentence and replacing it with "July 1, 2000."