The OSC released the December 2016 edition of the Investment Funds Practitioner, which provides, among other things, an overview of recent issues arising from Staff’s review of mutual fund sales practices and applications for exemptive relief.
Of note, OSC Staff has recommended relief from the requirement to deliver an information circular in connection with an investment fund securityholder meeting, which would allow an investment fund to deliver a notice-and-access document providing basic information about the subject matter of the meeting and instructions on how to access the information circular online or request a copy.
Staff has also recommended expanding existing relief granted to allow mutual funds to use OTC swaps that are cleared on a voluntary basis, provided the same procedures apply as with swaps that are subject to mandatory clearing. The Staff also provides fresh clarification for investment fund managers (IFMs) with respect to the organization of conferences and seminars by IFMs for the benefit of participant dealers’ salespersons. The CSA’s position continues to be that IFMs who invite conference participants from participating dealers should generally be dealing with the dealers and not with individual salespersons.
OSC Staff also reminded Independent Committee Members of their duty to balance and consider the varied interests of different investor groups when being asked by IFMs to provide direction on a conflict of interest.
Finally, OSC Staff has commenced an issue-oriented review of scholarship plans registered as Registered Education Savings Plans, to obtain further information on their operational practices. RESP sponsors should be prepared to address concerns that will be reported by Staff later this year.