Securities regulators have granted a fund manager relief from the requirement to appoint an Independent Review Committee for funds, which it plans to shutter due to excessive regulatory costs.

According to Friday’s OSC Bulletin, the fund manager, “has recently determined that the regulatory costs associated with the operation of the funds outweigh the benefits of the funds for its clients.” So, it is proposing to terminate the funds.

Instead, it has become actively engaged in the process of creating new funds to be offered under exemptions from the prospectus requirement. The firm also maintains that it would not be in the best interests of clients to wind up the existing funds before the exempt pooled funds have been established, as this might result in clients being treated differently and in a less orderly liquidation of portfolio securities.

The regulators granted relief from setting up an IRC for the existing funds, provided that they are wound up by Oct. 1.