Greystone Managed Investments Inc. - Director's Decision

IN THE MATTER OF

SECTION 139 OF R.R.O. 1990,REGULATION 1015

MADE UNDER THE SECURITIESACT (ONTARIO)

AND

IN THE MATTER OF

GREYSTONE MANAGED INVESTMENTSINC.

DIRECTOR'S DECISION

By letter dated April 9, 2003, I, as Manager,Compliance, advised the registrant, Greystone Managed InvestmentsInc., that the Ontario Securities Commission (the "Commission")had not received the registrant's annual audited financial statementsfor the year ended December 31, 2003. The registrant was advisedthat staff was of the view that its registration as a extraprovincial limited market dealer conditional and investmentcounsel/portfolio manager should be restricted by the impositionof terms and conditions (as attached to the letter). In theApril 9, 2003 letter, the registrant was asked to advise staffwhether it accepted the terms and conditions outlined in theletter. If not, the registrant was advised that it could availitself of the opportunity to be heard by a Director pursuantto section 26(3) of the Act. If the registrant intended to exercisethis opportunity, it was asked to provide written notice tothe Manager, Compliance. The annual financial statements werefiled by Greystone by letter dated April 9, 2003 (received bythe Commission on April 10, 2003).

By letter dated April 16, 2003, the registrantprovided its formal request for the Commission to remove theproposed terms and conditions for the following reason:

1. Although the financial statements werecompleted within the requisite filing period, an administrativeerror resulted in the filing of the statements with the varioussecurities regulators on April 10, 2003.

The registrant goes on to say that "Despitethe delay in our filing, we do not feel that there has beenany prejudice to any regulator or member of the public in theProvince of Ontario or elsewhere. Indeed, we feel that the latefiling fee that we have paid should be viewed as sufficientfor our filing oversight and is consistent with the treatmentin other jurisdictions. Given the strength of Greystone's financialposition and, we believe, our record and reputation for goodcompliance practices, the additional administrative filing proposedin your additional terms and conditions is unnecessarily onerousfor the purpose of protecting the public interest."

In staff's opinion, the reason and argumentsdo not outweigh the need to impress upon this and other registrantsthe importance of complying with the filing requirement andterms and conditions therefore should be imposed on its registration.The filing of annual financial statements by registrants isone of the most serious regulatory requirements in the Act.Financial solvency is one of the essential components of a dealeror adviser's continued suitability for registration. Financialstatements are the principal tool enabling staff to monitora registrant's financial viability and its capital position.As a result, the late filing (or non-filing) of annual financialstatements raises serious potential regulatory concerns andneeds to be addressed in a serious fashion.

On the basis of all written submissions presentedto me and after having reviewed them, it is my decision thatthe registration of Greystone Managed Investments Inc. shouldbe restricted by the terms and conditions outlined in the April9, 2003 letter.

April 17, 2003.

"Marrianne Bridge"