CI Investments Inc. et al. - MRRS Decision
Headnote
Mutual Reliance Review System for Exemptive Relief Application -- Extension of distribution beyond lapse date for certain funds until the effective date of the mergers of the funds.
Applicable Statutory Provisions
Securities Act, R.S.O 1990, c. S.5, as am., s. 147.
July 25, 2005
IN THE MATTER OF
THE SECURITIES LEGISLATION OF
BRITISH COLUMBIA, ALBERTA,
SASKATCHEWAN, MANITOBA, ONTARIO, QUÉBEC, NEW BRUNSWICK,
NOVA SCOTIA, PRINCE EDWARD ISLAND, NEWFOUNDLAND AND LABRADOR,
YUKON AND NUNAVUT (the Jurisdictions)
AND
IN THE MATTER OF
THE MUTUAL RELIANCE REVIEW SYSTEM FOR
EXEMPTIVE RELIEF APPLICATIONS
AND
IN THE MATTER OF
CI INVESTMENTS INC. (the Filer)
AND
BPI AMERICAN EQUITY RSP FUND
BPI GLOBAL EQUITY RSP FUND
CI AMERICAN MANAGERS® RSP FUND
CI AMERICAN SMALL COMPANIES RSP FUND
CI AMERICAN VALUE RSP FUND
CI EMERGING MARKETS RSP FUND
CI EUROPEAN RSP FUND
CI GLOBAL RSP FUND
CI GLOBAL BIOTECHNOLOGY RSP FUND
CI GLOBAL CONSUMER PRODUCTS RSP FUND
CI GLOBAL ENERGY RSP FUND
CI GLOBAL FINANCIAL SERVICES RSP FUND
CI GLOBAL HEALTH SCIENCES RSP FUND
CI GLOBAL MANAGERS® RSP FUND
CI GLOBAL SMALL COMPANIES RSP FUND
CI GLOBAL SCIENCE & TECHNOLOGY RSP FUND
CI GLOBAL VALUE RSP FUND
CI INTERNATIONAL RSP FUND
CI INTERNATIONAL VALUE RSP FUND
CI JAPANESE RSP FUND
CI PACIFIC RSP FUND
CI VALUE TRUST RSP FUND
HARBOUR FOREIGN EQUITY RSP FUND
SYNERGY AMERICAN RSP FUND (FORMERLY CALLED SYNERGY AMERICAN MOMENTUM RSP FUND)
SYNERGY EXTREME GLOBAL EQUITY RSP FUND
SYNERGY GLOBAL RSP FUND (FORMERLY CALLED SYNERGY GLOBAL MOMENTUM RSP FUND)
SYNERGY GLOBAL STYLE MANAGEMENT RSP FUND
CI GLOBAL BOOMERNOMICS® RSP FUND
CI INTERNATIONAL BALANCED RSP FUND
HARBOUR FOREIGN GROWTH & INCOME RSP FUND
CI GLOBAL BOND RSP FUND
CI GLOBAL CONSERVATIVE RSP PORTFOLIO
CI GLOBAL BALANCED RSP PORTFOLIO
CI GLOBAL GROWTH RSP PORTFOLIO
CI GLOBAL MAXIMUM GROWTH RSP PORTFOLIO
(collectively, the Funds)
MRRS DECISION DOCUMENT
Background
The local securities regulatory authority or regulator (the Decision Maker) in each of the Jurisdictions has received an application from the Filer for a decision under the securities legislation of the Jurisdictions (the Legislation) for an exemption that the time limits pertaining to the distribution of securities of the Funds under the simplified prospectus and annual information form dated July 23, 2004 of the Funds, as amended from time to time, (collectively, the CI Prospectus), be extended to permit the continued distribution of securities of the Funds until September 10, 2005 (the Requested Relief).
Under the Mutual Reliance Review System for Exemptive Relief Applications
(a) the Ontario Securities Commission is the principal regulator for this application, and
(b) this MRRS decision document evidences the decision of each Decision Maker.
Interpretation
Defined terms contained in National Instrument 14-101 Definitions have the same meaning in this decision unless they are defined in this decision.
Representations
This decision is based on the following facts represented by the Filer:
1. Each Fund currently distributes its securities in each province and territory of Canada pursuant to the CI Prospectus. The CI Prospectus was previously filed with the CSA as SEDAR project no. 665295.
2. Each Fund is a reporting issuer as defined in the securities legislation of each province and territory of Canada and is not in default of any of the requirements of such legislation.
3. The earliest lapse date of the CI Prospectus under the Legislation is July 23, 2005.
4. The February 23, 2005 federal budget proposed that the foreign property rules contained in the Income Tax Act (Canada) be repealed effective for months ending in 2005 and subsequent years (the Budget Proposals). When the Budget Proposals were enacted as law on June 29, 2005, the Funds became redundant and therefore the Filer intends to terminate each Fund prior to September 10, 2005 (the Terminations).
5. A renewal prospectus was filed by CI for the mutual funds (other than certain mutual funds that will be terminated in connection with mutual fund mergers) distributing securities under the CI Prospectus not the subject matter of the Terminations. A final renewal prospectus for these mutual funds was receipted June 23, 2005.
6. If the Requested Relief in respect of the Funds is not granted, CI will be required to file a renewal prospectus for the Funds, notwithstanding that the Funds will be terminated prior to September 10, 2005. The financial costs and time involved in producing, filing, and printing a prospectus for the Funds would be unduly costly. It may also cause confusion among investors who may assume that the Funds continue to be available for purchase after September 10, 2005.
7. There have been no material changes in the affairs of any Fund since the filing of the CI Prospectus, other than those for which amendments have been filed. Accordingly, the CI Prospectus represents current information regarding each Fund.
8. The requested lapse date extension will not affect the accuracy of the information in the CI Prospectus and therefore will not be prejudicial to the public interest.
Decision
Each of the Decision Makers is satisfied that the test contained in the Legislation that provides the Decision Maker with the jurisdiction to make the Decision has been met.
The decision of the Decision Makers under the Legislation is that the Requested Relief is granted.