SEI Investments Canada Company - MRRS Decision
Headnote
MRRS Exemptive Relief Application - 10 day lapse-dateextension granted to enable a mutual fund to continue the distributionof its securities beyond the original lapse date of its currentprospectus, subject to filing of pro forma prospectus no lessthan 7 days prior to the new lapse date and to the cancellationright of investors who purchase securities of the mutual fundafter the original lapse and before the date of the decisiondocument.
Statutes Cited
Securities Act, R.S.O. 1990, c. S.5, as am.,ss. 62(2) and 62(5).
IN THE MATTER OF
THE SECURITIES LEGISLATION OF
BRITISH COLUMBIA, ALBERTA,
SASKATCHEWAN, MANITOBA, ONTARIO,
NOVA SCOTIA, NEW BRUNSWICK,
PRINCE EDWARD ISLAND,
NEWFOUNDLAND AND LABRADOR AND
YUKON TERRITORY
AND
IN THE MATTER OF
THE MUTUAL RELIANCE REVIEW SYSTEM FOR
EXEMPTIVE RELIEF APPLICATIONS
AND
IN THE MATTER OF
SEI INVESTMENTS GROUP OF FUNDS
CORE BALANCED FUND
BALANCED GROWTH FUND
BALANCED INCOME FUND
BALANCED GROWTH PLUS FUND
DIVERSIFIED EQUITY FUND
GLOBAL EQUITY FUND
(The "Funds")
MRRS DECISION DOCUMENT
WHEREAS the local securities regulatoryauthority or regulator (the "Decision Maker") in eachof British Columbia, Alberta, Saskatchewan, Manitoba, Ontario,Nova Scotia, New Brunswick, Prince Edward Island, Newfoundlandand Labrador and the Yukon Territory (the "Jurisdictions")has received an application from SEI Investments Canada Company("SEI") and the Funds for a decision pursuant to thesecurities legislation of the Jurisdictions (the "Legislation),extending the periods prescribed by the Legislation for thefiling of the Fund's renewal prospectus, in order to enableit to continue the distribution of its securities beyond theLapse Date (as defined in paragraph 5 below) of its prospectusdated May 7, 2001 (the Current Prospectus");
AND WHEREAS pursuant to the Mutual RelianceReview System for Exemptive Relief Applications (the "System"),the Ontario Securities Commission is the principal regulatorfor this application;
AND WHEREAS it has been representedby SEI to the Decision Makers that:
1. SEI is the manager of each Fund;
2. Each Fund is an unincorporated open-end mutualfund trust created under the laws of the Province of Ontarioby a trust agreement;
3. Each Fund is a reporting issuer under theLegislation and is not on the list of defaulting reporting issuersmaintained under the Legislation;
4. Units of the three series of each Fund aredistributed on a continuous basis in each Jurisdiction pursuantto a simplified prospectus and annual information form datedMay 7, 2001, as amended and restated by an amended and restatedsimplified prospectus and annual information form dated June6, 2001, as amended and restated by an amended and restatedprospectus and annual information form dated December 27, 2001(collectively, the "Current Prospectus");
5. The lapse date of the Current Prospectusis May 7, 2002 (the "Lapse Date");
6. Certain issues relating to the renewal ofthe Prospectus and the proper calculation and presentation ofthe related financial and performance information have preventedcompletion of the pro-forma simplified prospectus and annualinformation form relating to the renewal and some additionaltime is required for such purposes; and
7. SEI filed an application dated May 2, 2002for an extension of the lapse date of its prospectus dated May7, 2001.
AND WHEREAS pursuant to the System thisMRRS Decision Document evidences the decision of each DecisionMaker (the "Decision");
AND WHEREAS each of the Decision Makersis satisfied that the test contained in the Legislation thatprovides the Decision Maker with the jurisdiction to make theDecision has been met;
THE DECISION of the Decision Makerspursuant to the Legislation is that the periods prescribed bythe Legislation for the filing of the Fund's renewal prospectus,in connection with the continuous distribution of the Fund'ssecurities, are hereby extended by ten days as if the LapseDate of the Current Prospectus were May 17, 2002, provided that
(a) the Fund's pro forma prospectus is filed not less than 7days prior to May 17, 2002;
(b) every security holder of record of the Fundwho purchased securities of the Fund in any Jurisdiction afterthe Lapse Date and before the date of this Decision Document(the "Affected Security Holder") is provided withthe right
· to cancel (the "Cancellation Right")such purchase within 20 business days from receipt of a statement(the "Statement of Rights") describing the CancellationRight, and
· to receive, upon exercise of the CancellationRight, the purchase price per unit equal to the net asset valueper unit on the date of such purchase (the "Purchase Priceper Unit") paid on the acquisition of such securities,including all fees and expenses incurred in effecting such purchase;
(c) the Fund mails the Statement of Rights anda copy of this Decision Document to Affected Security Holdersno later than May 17, 2002; and
(d) if the net asset value per unit of the Fundon the date that an Affected Security Holder exercises the CancellationRight is less than the Purchase Price per Unit, SEI shall reimbursethe difference to the Fund.
May 7, 2002.
"Paul Dempsey"