Several of the largest fund companies have received OSC exemptions from the requirement to deliver their funds’ financials to all unitholders. The exemptions are valid as along as they provide the financials to those who request them, and post them on their websites.

The following fund companies have been given relief: RBC Funds Inc., CIBC, Investors Group Inc., AIM Fund Management Inc., Altamira Investment Services Inc., Cartier Mutual Funds Inc., ClaringtonFunds Inc., Co-operators Mutual Funds Limited, Counsel Group of Funds Inc., Dynamic Mutual Funds Ltd., Fidelity Investments Canada Limited, Franklin Templeton Investments Corp., Mackenzie Financial Corporation, McLean Budden Funds Inc., National Bank Securities Inc., Phillips, Hager & North Investment Management Ltd., Putnam Investments Inc. and Sceptre Investment Counsel.

RBC and its various funds applied for relief from the requirement to deliver an annual report and comparative annual financial statements of the funds unless unitholders have requested to receive them. In cases where RBC is the dealer, RBC proposed to send a notice to unitholders, who hold the units under their own name, advising them that they will not receive the annual report or annual financial statements for the year ended December 31, 2002, unless requested. But where RBC is not the dealer, the financials will be sent.

The exemption decision notes that the Canadian Securities Administrators have published for comment a proposed rule which would permit mutual funds not to deliver annual financial statements to securityholders who do not request them — if the funds provide each securityholder with a request form to receive the mutual fund’s annual financial statements for that financial year. The rule would also require a mutual fund to have a toll-free telephone number for those that want to receive a copy of the financials. RBC will have the toll-free number and online access.

The decision also requires RBC to record the number and a summary of complaints received from securityholders about not receiving the financials, to measure the number of “hits” on the annual report and annual financial statements on the funds’ website, and, provide estimates of the cost savings resulting from the decision. It provides substantially the same terms for CIBC and Investors Group.