Two of the bank-owned fund companies have received regulatory relief allowing their funds to continue trading mortgages and mortgage-backed securities with their affiliates.

In decisions reported in Friday’s OSC Bulletin, TD Asset Management Inc. and Scotia Securities Inc. both received relief to permit their portfolio managers to continue to buy mortgages from, and sell them to, certain affiliates past November 1, which is when prior relief expires due to the imposition of new fund governance requirements.

The new relief is issued with revised conditions which contemplate approval of the funds’ independent review committee. The regulators granted the relief, provided that: the trade is consistent with, or is necessary to meet, the investment objective of the fund; the IRC of the fund has approved the transaction; among other requirements.