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THE SECURITIES ACT |
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Order No. 7415 |
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Section 20(1) |
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June 26, 2017 |
Blanket Order 81-502
Exemption from Prescribed Text of Mutual Fund Audit Reports
WHEREAS:
(A) Terms defined in the Securities Act (Manitoba) (the Act), National Instrument 14-101 Definitions, or National Instrument 81-102 Investment Funds (NI 81-102) have the same meaning in this Blanket Order, unless otherwise defined.
(B) In this order:
(i) “Canadian GAAS” means generally accepted auditing standards determined with reference to the Handbook; and
(ii) “Handbook” means the Handbook of the Chartered Professional Accountants of Canada, as amended from time to time.
(C) Part 12 of NI 81-102 requires a mutual fund, the principal distributor of a mutual fund and a participating dealer that distributes securities of a mutual fund (collectively, a Regulated Entity) to file:
(i) a report (a Compliance Report) confirming its compliance with Parts 9, 10 and 11 of NI 81-102 (the Provisions), and
(ii) a report of its auditor (an Audit Report) expressing, in terms prescribed respectively in Appendix B-1, B-2 or B-3 of NI 81-102 (each, a Prescribed Text), the auditor's opinion that the Compliance Report complies in all material respects with the Provisions.
(D) Because of amendments to Canadian GAAS contained in the section of the Handbook titled "Other Canadian Standards – General Assurance and Auditing", a Prescribed Text will not comply with Canadian GAAS for an auditor's report dated on or after June 30, 2017.
(E) The Manitoba Securities Commission (the Commission) is of the opinion that it is not prejudicial to the public interest to make this order.
IT IS ORDERED:
1. That, pursuant to subsection 20(1) of the Act, a Regulated Entity is exempted from the requirements of Part 12 of NI 81-102 to file, with a Compliance Report dated on or after June 30, 2017, an Audit Report using the relevant Prescribed Text, provided the Regulated Entity files with its Compliance Report an unmodified assurance report of its auditor that:
a) is based on work conducted in accordance with Canadian GAAS; and
b) provides reasonable assurance, as this term is used in the Handbook, the Compliance Report complies in all material respects with the applicable requirements of the Provisions.
BY ORDER OF THE COMMISSION
Director, General Counsel