RBC Asset Management Inc. has received a regulatory exemption from certain mutual fund portfolio reporting requirements, provided that disclosure is made in the management reports of fund performance for each mutual fund and that certain records of portfolio transactions are kept.
The firm sought relief from the requirement that mutual fund managers file a report within 30 days after each month end for each mutual fund relating to every trade through any related party. “It would be costly and time consuming to provide the information required by the reporting requirement on a monthly and segregated basis for each fund,” the decision notes.
Exemptive relief from the requirement was previously granted, however under new disclosure rules, mutual funds are no longer required to prepare and file a statement of portfolio transactions. “The elimination of the requirement to file a statement of portfolio transactions resulted in [RBC] being required to file monthly reports regarding purchases and sales of securities effected through a related party, and each fund having to provide similar disclosure regarding such transactions in its interim and annual MRFPs,” it says.
The Ontario Securities Commission reported its decision in today’s OSC Bulletin, granting relief provided that:
- the annual and interim MRFPs for each fund disclose, the name of the related party, the amount of fees paid to each related party, and, the person or company who paid the fees, if they were not paid by the fund; and
- the records of portfolio transactions maintained by each fund include the same information, separately for every portfolio transaction effected through a related party.