Sentry Select Canadian Resources Fund Ltd. - MRRS Decision
Headnote
MRRS Exemptive Relief Application - Two-week lapse-date extension granted to enable a mutual fund to continue thedistribution of its securities beyond the original lapse date of its current prospectus, subject to filing of pro formaprospectus no less than 7 days prior to the new lapse date and to the cancellation right of investors who purchasesecurities of the mutual fund after the original lapse and before the date of the decision document.
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
QUEBEC, BRITISH COLUMBIA, ALBERTA, SASKATCHEWAN,
MANITOBA, ONTARIO, NEW BRUNSWICK, NOVA SCOTIA,
PRINCE EDWARD ISLAND AND NEWFOUNDLAND
AND
IN THE MATTER OF
THE MUTUAL RELIANCE REVIEW SYSTEM FOR
EXEMPTIVE RELIEF APPLICATIONS
AND
IN THE MATTER OF
SENTRY SELECT CANADIAN RESOURCE FUND LTD.
MRRS DECISION DOCUMENT
WHEREAS the local securities regulatory authority or regulator (the "Decision Maker") in each of the Provincesof Ontario, British Columbia, Alberta, Saskatchewan, Manitoba, Quebec, New Brunswick, Nova Scotia, Prince EdwardIsland, and Newfoundland (the "Jurisdictions") has received an application (the "Application") from Sentry Select CapitalCorp. ("Sentry Select") and Sentry Select Canadian Resource Fund Ltd. (the "Fund") 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 enable it to continue the distribution of its securities beyond the LapseDate (as defined in paragraph 4 below) of its prospectus dated March 2, 2000 (the Current Prospectus");
AND WHEREAS pursuant to the Mutual Reliance Review System for Exemptive Relief Applications (the"System"), the Ontario Securities Commission is the principal regulator for this application;
AND WHEREAS it has been represented by the Manager to the Decision Makers that:
1. Sentry Select is a corporation established under the laws of Ontario. It is the manager, promoter anddistributor of the Fund.
2. The Fund is a mutual fund corporation incorporated under the laws of the Province of Ontario.
3. The Fund is a reporting issuer under the Legislation and is not default of any of the requirements of theLegislation or the regulations made thereunder.
4. The Fund's securities are currently distributed to the public in all the Jurisdictions pursuant to the CurrentProspectus. The lapse date of the Current Prospectus is March 2, 2001 in certain Jurisdictions, March 6, 2001in certain other Jurisdictions and March 6, 2001 in Quebec (collectively, the "Lapse Date").
5. Since the date of the Current Prospectus, no material change has occurred in respect of the Fund and noamendments have been made to the Prospectus.
6. As manager, Sentry Select failed to file the pro forma prospectus of the Fund within the period prescribed bythe Legislation due to inadvertence.
AND WHEREAS pursuant to the System this MRRS Decision Document evidences the decision of eachDecision Maker (collectively, the "Decision");
AND WHEREAS each of the Decision Makers is satisfied that the test contained in the Legislation that providesthe Decision Maker with the jurisdiction to make the Decision has been met;
THE DECISION of the Decision Makers pursuant to the Legislation is that the periods prescribed by theLegislation for the filing of the Fund's renewal prospectus, in connection with the continuous distribution of the Fund'ssecurities, are hereby extended by two weeks as if the Lapse Date of the Current Prospectus were March 16, 2001,provided that
(a) the Fund's pro forma prospectus is filed not less than 7 days prior to March 16, 2001;
(b) every security holder of record of the Fund who purchased securities of the Fund in any Jurisdiction after theLapse Date and before the date of this Decision Document (the "Affected Security Holder") is provided with theright
to cancel (the "Cancellation Right") such purchase within 20 business days from receipt of a statement(the "Statement of Rights") describing the Cancellation Right, and
to receive, upon exercise of the Cancellation Right, the purchase price per unit equal to the net assetvalue per unit on the date of such purchase (the "Purchase Price per Unit") paid on the acquisition ofsuch securities, including all fees and expenses incurred in effecting such purchase;
(c) the Fund mails the Statement of Rights and a copy of this Decision Document to Affected Security Holders nolater than March 16, 2001; and
(d) if the net asset value per unit of the Fund on the date that an Affected Security Holder exercises theCancellation Right is less than the Purchase Price per Unit, Sentry Select shall reimburse the difference to theFund.
March 8, 2001.
"Paul A. Dempsey"