50Processing redemption requests

50 Processing redemption requests

(1) When the operator of a passport fund receives a request for redemption under section 48 or 49, the operator must, within the redemption period, process the redemption request and pay the member at a price per interest (the redemption price) that is: (a) the valuation entity’s estimation of the net asset value per interest of the passport fund, taking into account any redemption fees or transaction costs associated with redemption that have been disclosed to the member before the request; and (b) calculated using a valuation of the assets of the passport fund that is conducted after the request for redemption is received from the member. (2) The redemption period for requests for redemption must not exceed 15 days after the request is received by the operator, unless the operator has notified any member in writing that it will be a shorter period, in which case the shorter period applies as the maximum, or if there is a suspension permitted under section 51 or redemption is deferred under section 52. (3) If a notification by the operator under subsection (2) is in effect, the operator may not increase the redemption period without reasonable notice to members. (4) In the case of a request under section 48, the operator may not charge a redemption fee that is more than reasonably proportionate to the fee charged to any person who is entitled, under an arrangement with the operator, to redeem interests other than under section 48. (5) The operator must give the member the option of having the redemption price paid out in the currency in which the member paid for its interests in the passport fund, at the exchange rate available to the operator at the time of the redemption, subject to any reasonable costs based on a reasonable estimate of costs for any foreign currency exchange that the operator considers necessary for the purpose.