Equilife Investment Management Inc.
Headnote
Section 5.1 of OSC Rule 31-506 SRO Membership - Mutual Fund Dealers - mutual fund dealer exempted from the requirements of the Rule that it be a member of the Mutual Fund Dealers Association and file an application and prescribed fees for membership provided that it only effects transactions in mutual fund securities on behalf of its parent company where the parent company is principal in the transactions.Statutes Cited
Securities Act, R.S.O. 1990, c.S.5, as am.Rules Cited
OSC Rule 31-506 SRO Membership - Mutual Fund Dealers, ss. 2.1, 3.1, 5.1.IN THE MATTER OF
THE SECURITIES ACT
R.S.O. 1990, CHAPTER S. 5, AS AMENDED
AND
IN THE MATTER OF
ONTARIO SECURITIES COMMISSION RULE 31-506
SRO MEMBERSHIP - MUTUAL FUND DEALERS
AND
IN THE MATTER OF
EQUILIFE INVESTMENT MANAGEMENT INC.
DECISION
(Section 5.1)
UPON the application (the "Application") of Equilife Investment Management Inc. (the "Registrant") to the Director of the Ontario Securities Commission (the "Commission") for a decision pursuant to section 5.1 of Ontario Securities Commission Rule 31-506 SRO Membership - Mutual Fund Dealers (the "Rule") exempting the Registrant from section 3.1 of the Rule requiring the Registrant to prepare and submit an application for membership with the Mutual Fund Dealers Association (the "MFDA") no later than the thirtieth day after the effective date of the Rule;
AND UPON considering the Application and the recommendation of staff of the Commission;
AND UPON the Registrant having represented to the Director as follows:
1. The Registrant was incorporated in the Province of Ontario on March 11, 1998 pursuant to Articles of Incorporation. The Registrant is the wholly-owned subsidiary of The Equitable Life Insurance Company of Canada.
2. The Registrant became registered in the category of mutual fund dealer under the Securities Act (Ontario) (the "Act") effective November 16, 1998, and has been continually registered in the category of mutual fund dealer under the Act since that time.
3. Pursuant to section 3.1 of the Rule, all mutual fund dealers must prepare and submit to the MFDA an application for membership in the form prescribed by the MFDA, together with the MFDA's prescribed fees, no later than May 23, 2001. Pursuant to section 2.1 of the Rule, all mutual fund dealers must become members of the MFDA by July 2, 2002.
4. The Registrant carries on as its sole business the business of a mutual fund dealer that does not sell any mutual funds directly to the public, but is registered as a mutual fund dealer to enable the Registrant to carry on activities in respect of its parent, The Equitable Life Insurance Company of Canada ("Equitable Life").
5. From time to time, Equitable Life makes purchases of certain mutual fund securities for its own account. As a mutual fund dealer, the Registrant effects such purchases and sales as agent of Equitable Life. The Registrant does not effect any purchases or sales of mutual fund securities other than those for Equitable Life, and all transactions completed by the Registrant are solely for the direct benefit of Equitable Life.
AND UPON the Director being satisfied that to do so would not be prejudicial to the public interest;
IT IS THE DECISION of the Director, pursuant to section 5.1 of the Rule, that, effective May 23, 2001, the Registrant is exempt from the requirements in sections 2.1 and 3.1 of the Rule;
PROVIDED THAT:
As a term and condition of its registration under the Act as a mutual fund dealer, the Registrant conducts activities limited to effecting transactions in mutual fund securities only on behalf of Equitable Life, where Equitable Life is principal in the transactions.
September 28, 2001.
"Rebecca Cowdery"