A couple of mutual fund firms have received exemptions from self-dealing prohibitions allowing related parties to acquire their mutual funds’ troubled asset-backed commercial paper.

According to decisions reported in the OSC Bulletin today, Mawer Investment Management Ltd. received an exemption from the self-dealing requirements to accommodate the acquisition of ABCP from one of its mutual funds and discretionary managed account for a combination of cash and highly liquid government securities.

The regulators placed several conditions on the relief, including: that the proposed transactions are determined to be in the best interests of the fund; that they occur before October 31; and that the firm has an opinion from each member of the fund’s independent review committee (IRC) indicating that they believe the transactions will achieve a fair, and reasonable result for the fund.

Similar relief was also granted to the Fédération des caisses Desjardins du Québec. Although, in its case, the funds’ IRC is not yet fully operational. However, the decision noted that the members of the IRC, meeting as an ad hoc committee, agreed with the application for relief, and the proposed transactions.

http://www.oscbulletin.carswell.com/bb/osc/bb/3039/on3039.htm#2_1_9