Mavrix Fund Management Inc. - MRRS Decision

MRRS Decision

Headnote

MRRS for Exemptive Relief Applications- Time limits prescribed by the Securities Act (Ontario)for the filing of the pro forma prospectus and the final simplifiedprospectus extended to the time periods that would have beenapplicable if the lapse date for the distribution of the unitsof the funds was extended by one day.

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 LEGISLATIONOF
BRITISH COLUMBIA, ALBERTA,SASKATCHEWAN, MANITOBA,
ONTARIO, NOVA SCOTIA, PRINCEEDWARD ISLAND,
NEWFOUNDLAND AND LABRADOR,
YUKON TERRITORY AND NUNAVUTTERRITORY

AND

IN THE MATTER OF
THE MUTUAL RELIANCE REVIEWSYSTEM
FOR EXEMPTIVE RELIEF APPLICATIONS

AND

IN THE MATTER OF

MAVRIX AMERICAN GROWTH FUND
MAVRIX BALANCED FUND
MAVRIX CANADIAN VALUE FUND
MAVRIX ENTERPRISE FUND
MAVRIX GROWTH FUND
MAVRIX INCOME FUND
MAVRIX MONEY MARKET FUND
MAVRIX STRATEGIC FIXED INCOMEFUND
MAVRIX SUSTAINABLE DEVELOPMENTFUND
(collectively, the "Funds")

MRRS DECISION DOCUMENT

WHEREAS the Canadiansecurities regulatory authority or regulator (the "DecisionMaker") in each of the provinces and territories ofOntario, British Columbia, Alberta, Saskatchewan, Manitoba,Nova Scotia, Prince Edward Island, Newfoundland and Labrador,Yukon and Nunavut (the "Jurisdictions") hasreceived an application (the "Application") from MavrixFund Management Inc. ("Mavrix") in its capacityas trustee and manager of each of the Funds, for a decisionpursuant to the applicable securities legislation of the Jurisdictions(the "Legislation") that the time limits prescribedby the Legislation for filing the pro forma prospectus and thefinal simplified prospectus for the Funds be extended to thetime periods that would be applicable if the lapse date forthe distribution of the units of the Funds was June 20, 2001;

AND WHEREAS under theMutual Reliance Review System for Exemptive Relief Applications(the "System") the Ontario Securities Commission isthe principal regulator for the Application;

AND WHEREAS it has beenrepresented by Mavrix to the Decision Makers that:

1. Mavrix is a corporationincorporated under the Ontario Business Corporations Actand is the trustee and manager of each Fund. Mavrix's headoffice is located in Toronto, Ontario.

2. Each Fund is an unincorporated,open-end investment unit trust established and governed bya trust agreement made with Mavrix, as trustee, under thelaws of the Province of Ontario.

3. Each Fund is a reportingissuer as defined in the Legislation and is not in defaultof any of its obligations under the Legislation.

4. The Funds' units are currentlydistributed to the public in all of the Jurisdictions pursuantto a Simplified Prospectus and Annual Information Form datedJune 19, 2001, as amended and restated pursuant to an Amendedand Restated Simplified Prospectus and Annual InformationForm dated August 27, 2001 (together, the "CurrentProspectus").

5. The earliest lapse dateunder the Legislation for the distribution of units of theFunds under the Current Prospectus is June 19, 2002 (the "LapseDate").

6. On May 22, 2002 the Preliminaryand Pro forma Simplified Prospectus and Annual InformationForm of the Funds (together, the "Renewal Prospectus",being pro forma with respect to the Funds and preliminarywith respect to two new funds) was filed under SEDAR projectnumber 451456 in each of the Jurisdictions.

7. Mavrix intended to filethe Renewal Prospectus on or prior to May 21, 2002 (the "Proforma Filing Deadline"), being 30 days prior to the LapseDate (taking into account the May 20th statutoryholiday), and its preparation of the documents was proceedingon schedule to meet the Pro forma Filing Deadline. However,Mavrix encountered significant and unforeseen problems withits publishing software shortly prior to the Proforma FilingDeadline and was forced to manually transfer the entire contentsof the Current Prospectus, in both the English and Frenchlanguages, including graphics, into its word processing softwarein order to be able to prepare the Renewal Prospectus documentsfor filing. This caused the completion and filing of the RenewalProspectus to be delayed until May 22, 2002.

8. As described in the RenewalProspectus, the names of five of the Funds will be changed,with effect on June 27, 2002. The extension of the Lapse Dateto June 20, 2002, will enable Mavrix to file the Renewal Prospectusin final form (the "Final Prospectus") withinthe ten day period which follows June 20, 2002, thus allowingthe Final Prospectus to be dated June 27, 2002, at which timethe new names of the five Funds may be appropriately reflected.Absent the requested extension, the Final Prospectus of theFunds would predate the name changes and would result in theneed to file an amendment to the Final Prospectus of the Fundsas of June 27, 2002 to ensure that the new names of the fivefunds are properly reflected in the Final Prospectus.

AND WHEREAS under theSystem, this MRRS Decision Document evidences the decision ofeach Decision Maker (collectively, the "Decision");

AND WHEREAS each of theDecision Makers is satisfied that the test contained in theLegislation that provides the Decision Maker with the jurisdictionto make the Decision has been met;

THE DECISION of the DecisionMakers under the Legislation is that the time limits prescribedby the Legislation for the filing of the Renewal Prospectusand of the Final Prospectus of the Funds are hereby extendedby one day as if the Lapse Date of the Current Prospectus wereJune 20, 2002, provided that the Funds' Final Prospectus isfiled and receipted in each of the Jurisdictions on or beforeJuly 2, 2002.

June 18, 2002.

"Paul A. Dempsey"