Acts and Regulations

N-6.01 - New Brunswick Investment Management Corporation Act

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Repealed on 1 October 2016
CHAPTER N-6.01
New Brunswick Investment
Management Corporation Act
Assented to December 16, 1994
Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:
Repealed: 2016, c.28, s.73.
Definitions
1In this Act
“Board” means the board of directors of the Corporation;(Conseil)
“Corporation” means the New Brunswick Investment Management Corporation established under section 2;(Société)
“Minister” means the Minister of Finance;(Ministre)
“President” means the President of the Corporation.(Président)
Establishment of the Corporation
2There is established a body corporate to be known as the New Brunswick Investment Management Corporation consisting of those persons who from time to time comprise the board of directors.
Head office
3The head office of the Corporation is at the City of Fredericton.
Objects and purposes of the Corporation
4The objects and purposes of the Corporation are
(a) to act as trustee for the funds referred to in subsection 14(1),
(b) to provide investment counselling services and other services in respect of the funds referred to in section 15,
(c) to promote the development of the financial services industry and capital markets in the Province, and
(d) to carry out such other activities or duties as may be authorized or required by this Act or the Lieutenant-Governor in Council may direct.
Powers of the Corporation
5In respect of its objects and purposes, the Corporation has the capacity and subject to this Act, the rights, powers and privileges of a natural person.
Board of directors
6The board of directors of the Corporation shall consist of the following members:
(a) the President of the Corporation;
(b) the Deputy Minister of Finance, who shall be a non-voting member;
(c) the Vice-President of Finance of the New Brunswick Power Corporation; and
(d) at least six other members who shall be appointed by the Lieutenant-Governor in Council,
(i) one of whom shall be the dean of a faculty of business administration or similar faculty, or the person who holds the equivalent position, at a university in the Province,
(ii) one of whom shall be a member of the pension plan converted to a shared risk plan in accordance with An Act Respecting Public Service Pensions,
(iii) one of whom shall be a member of the plan under the Teachers’ Pension Plan Act, and
(iv) three of whom shall not be members of a pension plan described in subparagraph (ii) or (iii), but who shall, in the opinion of the Lieutenant-Governor in Council, have knowledge, experience and expertise relevant to the business and affairs of the Corporation.
2003, c.E-4.6, s.168; 2008, c.29, s.5; 2013, c.7, s.160; 2013, c.44, s.32; 2014, c.61, s.22
Term of office
7(1)The members of the Board appointed under paragraph 6(d) shall be appointed for a term not exceeding three years and are eligible for reappointment.
7(2)A member of the Board appointed under paragraph 6(d) may be removed for cause by the Lieutenant-Governor in Council.
7(3)Where a member of the Board is removed from office, the Minister shall lay the Order in Council providing for the removal of the member, and the documents relating to it, before the Legislative Assembly within ten days after the Order in Council is made or, if the Legislature is not in session, within ten days after the commencement of the next ensuing session.
7(4)Notwithstanding subsection (1) but subject to subsection (2), a member of the Board appointed under paragraph 6(d) remains in office until the member resigns, is re-appointed or replaced.
7(5)Where a vacancy occurs on the Board, the Lieutenant-Governor in Council may appoint a person to fill the vacancy for the balance of the term of the member replaced.
7(6)The Lieutenant-Governor in Council may, in the case of the temporary absence, illness or incapacity to act of any member of the Board, appoint a substitute for the member for the period of the temporary absence, illness or incapacity.
7(7)A vacancy on the Board does not impair the capacity of the Board to act.
Chairperson and Vice-Chairperson
8The Lieutenant-Governor in Council shall designate a Chairperson and a Vice-Chairperson of the Board from among the members of the Board appointed under paragraph 6(d).
Remuneration
9(1)Each member of the Board appointed under paragraph 6(d) is entitled to be paid such remuneration as is fixed by the by-laws of the Corporation.
9(2)Each member of the Board is entitled to be paid such travelling and living expenses incurred by the member in the performance of the member’s duties as are fixed by the by-laws of the Corporation.
Board to administer the affairs of the Corporation
10The Board shall administer the affairs of the Corporation on a commercial basis and all decisions and actions of the Board are to be based on sound business practice.
Quorum
11Five voting members of the Board, of whom one is either the Chairperson or the Vice-Chairperson, constitute a quorum.
President
12(1)The Lieutenant-Governor in Council shall appoint a President who shall act as the chief executive officer of the Corporation.
12(2)The President is, subject to the direction of the Board, charged with the general direction, supervision and control of the business of the Corporation, and may exercise such other powers as may be conferred on the President by the by-laws of the Corporation.
12(3)The President is an ex officio member of the Board.
12(4)The remuneration of the President shall be established by the by-laws of the Corporation.
12(5)The pension plan converted to a shared risk plan in accordance with An Act Respecting Public Service Pensions applies to the President.
12(6)The President may be removed for cause by the Lieutenant-Governor in Council.
12(7)Where the President is removed from office, the Minister shall lay the Order in Council providing for the removal of the President, and the documents relating to it, before the Legislative Assembly within ten days after the Order in Council is made or, if the Legislature is not in session, within ten days after the commencement of the next ensuing session.
2013, c.44, s.32
Employees
13(1)The employees of the Corporation shall be appointed in accordance with the staff requirements and the mode of appointment established by the by-laws of the Corporation.
13(2)The remuneration and other conditions of employment of the employees of the Corporation shall be established by the by-laws of the Corporation.
13(3)The pension plan converted to a shared risk plan in accordance with An Act Respecting Public Service Pensions applies to the employees of the Corporation.
2013, c.44, s.32
Corporation to act as trustee
14(1)The Corporation shall act as the trustee for the following funds:
(a) Repealed: 2013, c.44, s.32
(b) Repealed: 2014, c.61, s.22
(c) the pension fund referred to in section 17.1 of the Provincial Court Act; and
(d) such other funds as may be designated by regulation.
14(2)Subsection (1) applies notwithstanding any provision of any other Act or regulation or of any instrument or agreement in respect of a particular fund.
2013, c.44, s.32; 2014, c.61, s.22
Corporation to provide investment counselling services
15The Corporation shall provide, to the Minister or to such other person as may be the trustee of the following funds, investment counselling services or such other services in respect of the management and administration of those funds as the Minister or other person may direct:
(a) the sinking funds for the Province required by the Provincial Loans Act to be maintained by the Minister;
(b) Repealed: 2003, c.E-4.6, s.168
(c) the Viscount Bennett Trust Fund;
(d) the E. Belle Lynds Scholarship Fund;
(e) the Mental Health Trust Fund;
(f) the Group Insurance Trust Fund;
(g) the Sport Development Trust Fund;
(h) the Arts Development Trust Fund;
(i) the Environmental Trust Fund; and
(j) such other funds as may be designated by regulation.
2003, c.E-4.6, s.168
Agreements to provide services
16The Corporation may enter into and carry out agreements with any person in or outside the Province to act as trustee or to provide investment counselling services or other services in respect of the management and administration, as the case may be, of any pension fund, endowment trust fund, mutual fund, sinking fund, or any other trust fund or other fund.
Pooled investment funds
1998, c.19, s.1
16.1(1)The Corporation may establish and administer pooled investment funds in which the following may be combined in common for the purposes of investment:
(a) the assets, in whole or in part, of any of the funds referred to in subsection 14(1);
(b) any funds for which the Corporation acts as trustee under section 16;
(c) any funds for which the Corporation provides investment counselling services under section 16 if the trustee of those funds agrees to the pooling of the funds; or
(d) some or all of the assets and funds under paragraphs (a) to (c).
16.1(2)The Corporation shall act as the trustee for
(a) a pooled investment fund in which the assets, in whole or in part, of any of the funds referred to in subsection 14(1) are combined,
(b) a pooled investment fund in which any funds for which the Corporation acts as trustee under section 16 are combined,
(c) a pooled investment fund in which any funds for which the Corporation provides investment counselling services under section 16 are combined if the trustee of those funds agrees to the pooling of the funds, and
(d) a pooled investment fund in which some or all of the assets and funds under paragraphs (1)(a) to (c) are combined.
16.1(3)Any pooled investment fund referred to in paragraph (2)(a), (b), (c) or (d), as the case may, shall be held in trust by the Corporation.
1998, c.19, s.1
Authorized investments
17(1)The Corporation shall, except as otherwise specifically provided in the Act or instrument establishing a fund referred to in subsection 14(1), invest the money in those funds in accordance with the Trustees Act.
17(1.1)Notwithstanding any provision in the Act or instrument establishing a fund referred to in subsection 14(1) or any provision in an agreement entered into under section 16, the Corporation shall invest the money in a pooled investment fund referred to in subsection 16.1(2) in accordance with the Trustees Act.
17(2)Subject to subsections (1) and (1.1), the Corporation shall develop and adhere to a statement of investment policies and guidelines for each of the funds referred to in subsection 14(1) and for each of the pooled investment funds referred to in subsection 16.1(2).
17(3)The statement of investment policies and guidelines shall, with respect to the fund or pooled investment fund for which it has been developed and subject to subsections (1) and (1.1), describe the purpose and objectives of the fund or pooled investment fund, the duties of the persons responsible for the management and administration of the fund or pooled investment fund and the manner in which investments are to be considered and made.
17(4)Where the Corporation provides investment counselling services or other service in respect of the funds referred to in section 15 or the funds in respect of which an agreement has been entered into under section 16, it shall provide those services in accordance with the statement of investment policies and guidelines or such other directives as may be provided to the Corporation from time to time by the Minister, or by such other person who may be the trustee of the fund, or by the person with whom an agreement has been entered into under section 16, as the case may be.
17(5)In the development and implementation of the statements of investment policies and guidelines, the Corporation shall have regard to investment opportunities in the Province.
1998, c.19, s.2
Investment counsellors, security custodians, advisors and consultants
18The Corporation may engage the services of investment counsellors, security custodians, advisors and consultants to assist it in carrying out its responsibilities under this Act.
Accounting
19(1)The Corporation shall maintain a separate account for each of the funds referred to in subsection 14(1) and section 15, for any fund in respect of which an agreement has been entered into under section 16 and for each of the pooled investment funds referred to in subsection 16.1(2).
19(2)Money received by the Corporation with respect to a specific fund shall be credited to the appropriate account.
1998, c.19, s.3
Fees
20(1)The remuneration and expenses of the President, the other members of the Board and of the employees of the Corporation, and generally all costs, charges and expenses incurred and payable in respect of the conduct of the business and affairs of the Corporation shall be paid by the Corporation.
20(2)The Corporation may charge each fund referred to in subsection 14(1) and the Minister or such other person who may be the trustee of a fund referred to in section 15 such fees as are necessary for the purposes of subsection (1).
20(2.1)The Corporation may charge the person with whom an agreement has been entered into under section 16 such fees as are provided for in the agreement.
20(3)The fees charged to any fund referred to in subsection 14(1) are a charge upon and shall be paid out of the fund to which they are charged.
20(4)Subsections (1) to (3) apply in addition to and notwithstanding any provision of any other Act or regulation or of any instrument or agreement in respect of a particular fund.
1998, c.19, s.4
Conflict of interest
21The Corporation shall make by-laws establishing the policy of the Corporation in respect of situations considered by the Corporation to constitute a conflict of interest or a potential conflict of interest pertaining to the members of the Board and the employees of the Corporation including, without limiting the generality of the foregoing, the circumstances that constitute a conflict of interest or potential conflict of interest, the disclosure of the conflict of interest or potential conflict of interest and the manner in which it is to be dealt with.
Immunity
22No action lies for damages or otherwise against the President, any other member of the Board or any employee of the Corporation in relation to anything done or purported to be done in good faith, or in relation to anything omitted in good faith, under this Act by the President or any other member of the Board or any employee of the Corporation.
By-laws
23(1)The Corporation may, subject to the approval of the Lieutenant-Governor in Council, make by-laws for the control and management of the business and affairs of the Corporation.
23(2)The Regulations Act does not apply to a by-law made under subsection (1).
Fiscal year
24The fiscal year of the Corporation ends on the thirty-first of March in each year.
Budget
25(1)The Board shall, before the thirty-first day of December in each year, prepare and submit to the Board of Management a proposed budget containing the estimates of the amounts required for the operation of the Corporation for the next fiscal year.
25(2)The Secretary of the Board of Management may make a report on the budget, containing such recommendations as the Secretary considers appropriate, to the Chairperson within thirty days after receiving the budget.
Audit
26The accounts of the Corporation and the accounts of each fund referred to in subsection 14(1) and section 15 or in respect of which an agreement has been entered into under section 16 and each pooled investment fund referred to in subsection 16.1(2) shall be audited at least once a year by an auditor appointed by the Corporation.
1998, c.19, s.5
Reporting
27(1)The Corporation shall, within six months after the end of each fiscal year, submit to the Minister an annual report, containing the auditor’s report and such other information as may be required by the Minister in respect of the business and affairs of the Corporation during the fiscal year.
27(2)The Minister shall lay the annual report before the Legislative Assembly if it is in session or, if not, at the next ensuing session.
27(3)The Corporation shall, within six months after the end of each fiscal year, submit to the Minister or to such other person who may be the trustee of a fund referred to in section 15, as the case may be, a detailed report pertaining to the funds for which the Minister is the trustee or the funds for which another person is the trustee, respectively, containing such information in relation to the funds as may be required by the Minister or other person, as the case may be.
27(3.1)The Corporation shall, at the time specified in an agreement entered into under section 16, submit to the person with whom the agreement was entered into a detailed report pertaining to the funds under the agreement containing the information provided for in the agreement.
27(4)The Corporation shall provide to the Minister such information in respect of the business and affairs of the Corporation as the Minister may request from time to time.
27(5)The Corporation may provide to any department or agency of the Province such information obtained by the Corporation in the conduct of its business and affairs as may be beneficial to the department or agency.
1998, c.19, s.6
Regulations
28The Lieutenant-Governor in Council may make regulations
(a) designating funds for the purposes of paragraph 14(1)(d);
(b) establishing, as a trust fund, any fund designated under paragraph (a), notwithstanding any provision of any other Act or regulation or of any instrument or agreement in respect of that fund;
(c) designating funds for the purposes of paragraph 15(j);
(d) defining any word or expression used in this Act but not defined in this Act.
Consequential amendments
Provincial Court Act
29(1)Section 17.1 of the Provincial Court Act, chapter P-21 of the Revised Statutes, 1973, is amended
(a) by repealing subsection (3) and substituting the following:
17.1(3)The New Brunswick Investment Management Corporation shall be the trustee of the pension fund and the pension fund shall be held in trust by the New Brunswick Investment Management Corporation.
(b) by adding after subsection (4) the following:
17.1(4.1)Expenses that relate to the administration of the pension provisions of this Act and to the management and investment of the pension trust fund are a charge upon and payable out of the pension trust fund.
(c) by repealing subsection (7).
Public Service Labour Relations Act
29(2)Part I of the First Schedule of the Public Service Labour Relations Act, chapter P-25 of the Revised Statutes of New Brunswick, 1973 is amended by adding “New Brunswick Investment Management Corporation” after “New Brunswick Housing Corporation”.
Public Service Superannuation Act
29(3)Section 27 of the Public Service Superannuation Act, chapter P-26 of the Revised Statutes, 1973, is amended
(a) by repealing subsection (3) and substituting the following:
27(3)The New Brunswick Investment Management Corporation shall be the trustee of the pension trust fund and the pension trust fund shall be held in trust by the New Brunswick Investment Management Corporation.
(b) by repealing subsection (7).
Teachers’ Pension Act
29(4)Section 26 of the Teachers’ Pension Act, chapter T-1 of the Revised Statutes, 1973, is amended
(a) by repealing subsection (2) and substituting the following:
26(2)The New Brunswick Investment Management Corporation shall be the trustee of the Teachers’ Pension Fund and the Teachers’ Pension Fund shall be held in trust by the New Brunswick Investment Management Corporation.
(b) by repealing subsection (6).
Commencement
30This Act or any provision of it comes into force on a day or days to be fixed by proclamation.
N.B. This Act was proclaimed and came into force March 11, 1996.
N.B. This Act is consolidated to October 1, 2016.