CI Mutual Funds Inc. and Assante Asset Management Ltd. have been granted an exemption allowing their funds to buy shares in their parent company, CI Fund Management Inc (CIX), subject to review by an independent governance agency.

Both fund managers have established an independent review committee (the “IRC”), comprised entirely of individuals who are wholly independent of the manager and CIX., to oversee the holdings, purchases or sales of CIX securities for the funds.

The decision notes that the IRC will only consider unitholders’ best interests and no other factors in reviewing the holdings, purchases or sales of CIX securities to ensure that they have been made free from any influence by CIX and without taking into account any consideration relevant to CIX. Compensation to members of the IRC will be paid by the funds.

The regulators allowed the exemption subject to certain conditions, including: the IRC believes trading in CIX is made in the best interests of the relevant fund; this determination made by the IRC is included in detailed written minutes provided to the managers at least every quarter; reports of these trades are filed on SEDAR within 30 days; and, that regulators are informed if they ever reject a proposed trade.