(March 2 – 17:00 ET) – A ruling by the Ontario Securities Commission has granted Fidelity Investments Canada Ltd. permission to establish pooled funds for pension funds and private clients.

As disclosed in the decision, Fidelity intends to establish pooled funds. The company will manage the funds and serve as trustee. The decision also reveals that Fidelity “intends to offer discretionary investment management services to pension plans and other investors in Canada”. The private clients will be able to buy units in the funds or segregated accounts.

The funds will be offered under prospectus exemption in Ontario requiring a minimum initial investment of $150,000. The units will be non-transferable and will be offered on a continuous basis. After the initial investment, private clients could add additional units in any denomination either by direct sale or through reinvested distributions.

The OSC granted an exemption, subject to certain conditions, pending a final rule governing exempt distribution for managed accounts. A rule was last published for comment in the fall, with the comment period closing December 8.
-IE Staff