Many fund managers have received relief (“PAC Relief”) from the requirement to deliver the annual renewal simplified prospectus and any amendments thereto for participants in a pre- authorized payment/investment plan unless the participant asks to receive them. With the implementation of Stage 2 of Point of Sale Disclosure for Mutual Funds – Delivery of Fund Facts, dealers must deliver the fund facts document in lieu of delivering the simplified prospectus. As noted in OSC Staff Notice 81-721 Frequently Asked Questions on the Implementation of Stage 2 of Point of Sale Disclosure for Mutual Funds – Delivery of Fund Facts, most of the PAC Relief will terminate one year after the publication in final  form of any legislation or rule dealing with the prospectus delivery requirement. This means that existing PAC Relief for many fund managers will sunset in 2014. We encourage you to review your existing PAC Relief and consider whether your relief needs to be amended.

Avoid being caught without valid PAC Relief. BLG has extensive experience in negotiating these types of exemptions for the fund industry and can deliver cost effective results. BLG’s experts would be pleased to assist you with amending your PAC Relief for a reasonable fixed-fee.

BLG’s Fixed-Fee Service for Amending PAC Relief includes:

  • Reviewing your existing PAC Relief, with a focus on timelines and any peculiarities that may make your application unique from the group.
  • Participating in a group application for amended PAC Relief or, if you have unique circumstances, drafting a tailored individual exemption application to your principal regulator.
  • Negotiating with applicable securities regulators to obtain your amended relief.

Author

Kathryn M. Fuller 
KFuller@blg.com
416.367.6731

Other Author

Francesca F. Smirnakis

Expertise

Financial Services Sectors
Securities, Capital Markets and Public Companies
Investment Management