IN THE MATTER OF THE SECURITIES LEGISLATION OF BRITISH COLUMBIA,
ALBERTA, SASKATCHEWAN, MANITOBA, ONTARIO, QUEBEC, NOVA SCOTIA AND NEWFOUNDLAND AND
LABRADOR
AND
IN THE MATTER OF THE MUTUAL RELIANCE REVIEW SYSTEM FOR EXEMPTIVE RELIEF APPLICATIONS
AND
IN THE MATTER OF THE ROYAL MUTUAL FUNDS AND THE RBC ADVISOR FUNDS
MRRS DECISION DOCUMENT
WHEREAS the local securities regulatory authority
or regulator (the "Decision Maker") in each of the provinces of British Columbia, Alberta,
Saskatchewan, Manitoba, Qu�bec, Nova Scotia, Newfoundland and Labrador and Ontario
(collectively, the "Jurisdictions") has received an application from RBC Global
Investment Management Inc. ("GIM") for the Mutual Funds (as listed in Schedule
A) (the "Applicants" or the "Filer") for a decision under the
securities legislation of the Jurisdictions (the "Legislation") that
the
Applicants be exempt from:
1. the requirements triggered by the acquisition of beneficial ownership of, or the power
to exercise control or direction over, or securities convertible into, 10% or more of a
class of voting or equity securities under the provisions of the Legislation listed in
Appendix B of National Instrument 62-103, The Early Warning System and Related
Take-Over Bid and Insider Reporting Issues, ("NI 62-103") (the
"Early Warning Requirements");
2. the restrictions regarding further acquisitions of the securities described
in 1. above under the provisions of the Legislation listed in Appendix C of NI
62-103 (the "Moratorium Requirements"); and
3. the requirement in the Legislation for an insider of a reporting issuer to
file reports disclosing the insider's direct or indirect beneficial ownership
of, or control or
direction over, securities of a reporting issuer (the "Insider Reporting
Requirements", and collectively with the Early Warning Requirements and the
Moratorium Requirements, the "Requirements");
provided that the Applicants comply with, and otherwise meet, the reporting and
filing requirements and the other applicable conditions of NI 62-103, in each
case, as if the
Applicants were "eligible institutional investors" thereunder;
AND WHEREAS pursuant to the Mutual Reliance Review System for Exemptive
Relief Applications (the "System"), the Ontario Securities Commission
is the
principal regulator for this application;
AND WHEREAS, unless otherwise defined, the terms herein have the
meaning set out in National Instrument 14-101, Definitions, or in Qu�bec
Commission Notice 14-101;
AND WHEREAS the Applicants have represented to the Decision Makers
that:
1. GIM is a corporation incorporated under the laws of Canada. GIM's
head office is located in the Province of Ontario;
2. GIM is registered under the securities legislation in each province
and territory of Canada, except Nunavut, as an advisor in the categories of investment
counsel and portfolio manager. GIM acts as portfolio manager for each of the
Mutual Funds;
3. The Mutual Funds include the Royal Mutual Funds and the RBC Advisor
Funds, as listed in the attached Schedule A (the "Existing Funds"),
and any public mutual fund(s) that may be created in the future as part of the
Royal Mutual Funds,
the RBC Advisor Funds or otherwise, and for which GIM would act as portfolio
manager (the
"New Funds");
4. Each of the Existing Funds is a reporting issuer. As such, the
Existing Funds are not "eligible institutional investors" under NI
62-103. Any
New Funds would be reporting issuers and, therefore, would not be "eligible
institutional investors" under NI 62-103;
AND WHEREAS pursuant to the System this MRRS Decision Document
evidences the decision of each Decision Maker (collectively, the "Decision");
AND WHEREAS each of the Decision Makers is satisfied that the test
contained in the Legislation that provides the Decision Maker with the jurisdiction to
make the Decisions has been met;
THE DECISION of the Decision Makers pursuant to the Legislation is that
the Applicants be exempt from the Requirements contained in the Legislation,
provided that the Applicants comply with, and otherwise meet, the reporting and
filing requirements and
the other applicable conditions of NI 62-103, in each case, as if the Applicants
were "eligible institutional investors" thereunder.
DATED February 4, 2003
Howard I. Wetston Robert L. Shirriff
SCHEDULE A
Royal Mutual Funds
Royal Canadian Bond Index Fund
Royal Canadian Index Fund
Royal International RSP Index Fund
Royal Premium Canadian Index Fund
Royal Premium U.S. Index Fund
Royal U.S. Index Fund
Royal U.S. RSP Index Fund
O'Shaughnessy Canadian Equity Fund
O'Shaughnessy U.S. Growth Fund
O'Shaughnessy U.S. Value Fund
Royal $U.S. Money Market Fund
Royal Asian Equity Fund
Royal Balanced Fund
Royal Balanced Growth Fund
Royal Bond Fund
Royal Canadian Equity Fund
Royal Canadian Growth Fund
Royal Canadian Money Market Fund
Royal Canadian Small Cap Fund
Royal Canadian T-Bill Fund
Royal Canadian Value Fund
Royal Dividend Fund
Royal Energy Fund
Royal European Equity Fund
Royal Global Balanced Fund
Royal Global Bond Fund
Royal Global Communications and Media Sector
Royal Global Consumer Trends Sector Fund
Royal Global Education Fund
Royal Global Financial Services Sector Fund
Royal Global Health Sciences Sector Fund
Royal Global Industrials Sector Fund
Royal Global Resources Sector Fund
Royal Global Technology Sector Fund
Royal Global Titans Fund
Royal International Equity Fund
Royal Japanese Stock Fund
Royal Latin American Fund
Royal Life Science and Technology Fund
Royal Monthly Income Fund
Royal Canadian Short-Term Income Fund
Royal Precious Metals Fund
Royal Premium Money Market Fund
Royal Select Balanced Portfolio
Royal Select Growth Portfolio
Royal Select Conservative Income Portfolio
Royal U.S. Equity Fund
Royal U.S. Mid-Cap Equity Fund
Royal Tax Managed Return Fund
Royal Select Choices Aggressive Growth Portfolio
Royal Select Choices Balanced Portfolio
Royal Select Choices Growth Portfolio
Royal Select Choices Conservative Portfolio
RBC Advisor Funds
RBC Advisor Global Titans Class
RBC Advisor Global Communications and Media Class
RBC Advisor Global Consumer Trends Class
RBC Advisor Global Financial Services Class
RBC Advisor Global Health Sciences Class
RBC Advisor Global Industrials Class
RBC Advisor Global Resources Class
RBC Advisor Global Technology Class
RBC Advisor U.S. Equity Class
RBC Advisor Global Small Cap Equity Class
RBC Advisor Emerging Markets Equity Class
RBC Advisor Global Balanced Class
RBC Advisor Short-Term Income Class
RBC Advisor Canadian Bond Fund
RBC Advisor Global High Yield Fund
RBC Advisor Blue Chip Canadian Equity Fund
Headnote
Mutual Reliance Review System for Exemptive Relief Applications – investment manager
and mutual funds which are reporting issuers exempted from early warning and insider
reporting requirements provided that they comply with reporting and filing requirements as
if they were "eligible institutional investors" under National Instrument
62-103
Applicable British Columbia Provisions
Securities Act, R.S.B.C. 1996, c. 418, ss. 87, 91, 111 and 114(2)(c)
National Instrument 62-103 The Early Warning System and Related Take-over Bid and
Insider Reporting Issues