A labour-sponsored fund, Retrocom Growth Fund Inc., and its manager, Retrocom Investment Management Inc., have received a decision from regulators allowing it to pay distribution costs out of fund assets.

The fund sought, and received, a variation of a prior order to permit it to pay distribution costs out of fund assets contrary to the mutual fund sales practices rule. On January 26, 1999, an order was granted to the fund for an exemption permitting it to make certain payments to participating dealers and their representatives in connection with the distribution of shares of the fund.

The regulators have since received an application to revoke the previous decision and replace it with this decision to reflect: that the fund will now charge sales commissions paid on the sale of shares of the fund to retained earnings as share issue cost as they occur; that it will issue an additional new series of Class A shares with an alternative sales commission structure to that which currently exists; and, consequential variations to the previous decision as are necessary to reflect changes in the fund since the initial decision.

The variation was granted on the condition that the distribution costs are included in the management expense ratio, along with certain other conditions.