THE SECURITIES ACT ) Order No. 6230 ) NI 31-103 and ) Section 20 ) December 1, 2010 Exemption from Requirements for Mortgage Investment Corporations and Mortgage Syndicators BLANKET ORDER INTERPRETATION In this decision: (a) unless otherwise defined in this decision or the context otherwise requires, terms used that are defined in NI 31-103 Registration Requirements and Exemptions (NI 31-103) or National Instrument 14-101 Definitions have the same meaning. (b) “mortgage investment entity” means a person or company whose purpose is to invest substantially all of its assets in debts owing to it that are secured by mortgages, hypothecs or in any other manner on real property, and whose other assets are limited to: (i) deposits standing to its credit in the records of: a. a bank or other corporation whose deposits are insured by the Canada Deposit Insurance Corporation or the Autorité des marchés financiers; or b. a credit union; (ii) cash; (iii) securities listed in subsection (2) of Section 8.21 of NI 31-103; and (iv) instruments held to hedge specific risks relating to the debts owing to it that are secured by mortgages, hypothecs or in any other manner on real property. WHEREAS: 1. A mortgage investment entity or a person or company providing services relating to the business, operations or affairs of a mortgage investment entity may be required to register as an investment fund manager, adviser or exempt market dealer and comply with all requirements applicable to such categories pursuant to the requirements of NI 31-103.
Page 2 2. Each of the members of the Canadian Securities Administrators (the “CSA”) issued parallel orders effective on August 20, 2010 providing relief from the investment fund manager registration requirement and adviser registration requirement applicable to mortgage investment entities until December 31, 2010. 3. In Manitoba, this relief was provided in Commission Order number 6186 dated August 18, 2010. (the “Prior Order”). 4. Certain members of the CSA have agreed to extend the relief provided by the Prior Order until March 31, 2011. 5. The Commission is of the opinion it is not contrary to the public interest to grant the relief being sought IT IS ORDERED THAT: 1. Under section 20(1) of The Securities Act, R.S.M. 1988, c.S50, a person or company is exempt from the adviser registration requirement provided that the person or company: a) does not act as an adviser other than in respect of the securities issued by or owned by a mortgage investment entity, and b) does not carry out activities that would require registration under securities legislation for a person or company that is not a mortgage investment entity. 2. Under section 20(1) of The Securities Act, R.S.M. 1988, c.S50, a person or company is exempt from the investment fund manager registration requirement provided that the person or company: a) does not act as an investment fund manager other than in respect of the business, operations or affairs of a mortgage investment entity; and b) does not carry out activities that would require registration under securities legislation for a person or company that is not a mortgage investment entity. 3. The Prior Order is revoked. 4. This order will come into effect on December 3, 2010 and will cease to have effect on March 31, 2011. ”Chris Besko" Chris Besko Deputy Director - Legal
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