The Ontario Securities Commission (OSC) has lifted some of the regulatory burden for investment fund managers of pooled funds.
Fund managers of pooled funds now no longer need to apply for approval to act as trustees. As registrants, the OSC deems that fund managers are already capable of acting as trustees and are subject to the current securities regulatory framework for safeguarding the assets of pooled funds.
The change is reflected in Revised Approval 81-901 Mutual Fund Trusts: Approval of Trustees Under Clause 213(3)(b) of the Loan and Trust Corporations Act. The requirement dates back to 1997 when fund managers were not subject to other forms of regulatory oversight by the OSC, including the requirement to register. Under the old system an investment fund manager of a pooled fund seeking to act as a trustee had to pay an application fee of $1500, file the application, have it reviewed by OSC staff and receive approval of the application.
Since January 2009 OSC staff have received 134 applications, which seen have routine approval.
Revised Approval 81-901 Mutual Fund Trusts: Approval of Trustees Under Clause 213(3)(b) of the Loan and Trust Corporations Act is available for download from the website of the Ontario Securities Commission.
For more information, please call Barbara Hendrickson at BAX Securities Law (416) 601 -1004.
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