Securities regulators have granted AGF Funds Inc. relief from certain requirements concerning proposed fund mergers, but they point out the relief is not to be taken as a precedent for other fund firms.

The case relates to the approval of several fund mergers despite differences in investment objectives and the fact that one merger will occur on a taxable basis.

The funds involved are: AGF European Equity Class; AGF Japan Class; AGF Global Government Bond Fund; and Harmony Canadian Equity Pool

The regulators approved the proposed mergers and reorganization, subject to several conditions — notably that the simplified prospectus and financial statements of the continuing funds are not required to be sent to holders of the terminating funds, provided an information circular sent in connection with the unitholder meeting clearly discloses the other ways securityholders can access the simplified prospectus and financial statements.

However, the regulators indicate that, “this decision is based on exceptional circumstances and is not to be used as a precedent.”