Acts and Regulations

91-195 - General

Section 44
Disposition versions

Full text
Definitions
44(1)In this section
“book value” means the cost of acquisition of an asset of a pension fund, including all direct costs associated with the acquisition, before any external financing;(valeur comptable)
“mutual fund” means a fund established by a corporation duly authorized to operate the fund, the assets of which are comprised of investments from more than one depositor and shares of which are allocated to each depositor in order to establish the proportionate interest of each depositor at any time in the assets of the fund;(fonds mutuel)
“pooled fund” means a fund established by a corporation duly authorized to operate the fund, the assets of which are comprised of investments from more than one depositor and shares of which are allocated to each depositor in order to establish the proportionate interest of each depositor at any time in the assets of the fund;(fonds mis en commun)
“related person” means a person deemed to be related under paragraph (2)(g);(personne liée)
“security” means a document, instrument or writing commonly known as a security and includes a share of any class or series of shares or a debt instrument of a corporation, a certificate evidencing such a share or debt obligation, a warrant, an option, a future and a commodity;(valeur mobilière)
“segregated fund” means a fund established by a corporation duly authorized to operate the fund, the assets of which are comprised of investments from more than one contributor and are maintained by the corporation separately and distinctly from the assets of its general funds;(fonds réservé)
“subsidiary” means a corporation deemed to be a subsidiary under paragraph (2)(c);(filiale)
“traded publicly” means traded on (négocié publiquement)
(a) a provincially regulated stock exchange in Canada, or
(b) any other market on which securities are traded if the prices at which they have been traded on that market are regularly published in a newspaper or business or financial publication having a general and regular paid circulation or in a publication regularly distributed by an investment or securities dealer;
“voting share” means a share of any class of shares of a corporation that carries voting rights under all circumstances and any share of any class of shares that carries voting rights as a result of the occurrence of a contingency that has occurred and continues to occur.(action avec droit de vote)
Affiliates, subsidiaries, control
44(2)For the purposes of this Regulation
(a) a corporation shall be deemed to be an affiliate of another if
(i) it is the subsidiary of the other,
(ii) both corporations are subsidiaries of a third corporation, or
(iii) both corporations are controlled by the same person,
(b) an affiliate of a corporation shall be deemed to be an affiliate of every other affiliate of the corporation,
(c) a corporation shall be deemed to be the subsidiary of another if it is controlled by
(i) the other,
(ii) that other and one or more other corporations all of which are controlled by that other, or
(iii) one or more corporations, all of which are controlled by that other,
(d) a corporation shall be deemed to be controlled by a person if
(i) the person holds, other than by way of security, by or for the benefit of only that person, voting shares of the corporation that carry more than fifty per cent of the votes for the election of directors, and
(ii) the votes referred to in subparagraph (i) are sufficient, if exercised, to elect a majority of the board of directors of the corporation,
(e) a corporation shall be deemed to be the holding corporation of all its subsidiaries,
(f) a person who controls a corporation shall be deemed to own all the voting shares owned by the corporation, and
(g) a person shall be deemed to be related to
(i) any corporation that the person controls and any affiliate of any such corporation,
(ii) any partner of the person who has substantial beneficial interest in a partnership in which the person has a substantial beneficial interest,
(iii) a trust or estate in which the person has a substantial beneficial interest or of which the person serves as a trustee or in a capacity similar to a trustee,
(iv) the spouse or common-law partner and every child of the person, and
(v) any relative of the person or of the person’s spouse or common-law partner.
Statement of investment policies and goals of pension plan
44(3)The administrator of a pension plan shall establish, adopt and follow a written statement of investment policies and goals for the plan which shall be tailored to the type of pension plan administered and the nature of its liabilities and which shall, unless the Superintendent authorizes otherwise, include the following:
(a) the investment portfolio diversification, including the total and individual investment limits;
(b) the asset mix policy and rate of return expectations;
(c) the categories and sub-categories of investments and loans that may be made;
(d) the policy to be followed where there is an actual or perceived conflict of interest on the part of the administrator, a member of a pension committee, board of trustees or any board, agency or commission acting as the administrator or any employee or agent of the administrator;
(e) minimum disclosure requirements with respect to the actual or perceived conflict of interest, including the timing of the disclosure;
(f) the lending of cash or securities;
(g) the retention or delegation of voting rights acquired through pension plan investments; and
(h) the basis for the valuation of investments that are not regularly traded.
Statement of investment policies and goals of pension plan
44(4)The selection of investments to be permitted under the written statement of policies and goals shall be made in consideration of the overall context of the existing or proposed investment portfolio, without undue risk of loss or impairment to the pension fund and with a reasonable expectation of fair return or appreciation to the fund, given the nature of the investment.
Statement of investment policies and goals of pension plan
44(5)The administrator shall review the written statement of investment policies and goals referred to in subsection (3) within three years after the later of
(a) the date on which the administrator establishes and adopts the statement, and
(b) if applicable, the commencement date of this Regulation,
and subsequently at intervals of not more than three years, with each interval commencing to run on the immediately preceding review date.
Statement of investment policies and goals of pension plan
44(6)An administrator reviewing a written statement of investment policies and goals under subsection (5) shall
(a) if no amendments are to be made to the statement, notify the Superintendent in writing to that effect, or
(b) if amendments are made to the statement, apply for registration of the amendments in accordance with section 11 of the Act and with the regulations.
Statement of investment policies and goals of pension plan
44(7)No person shall select an investment of or make a loan from a pension fund unless the investment or loan is permissible under the written statement of investment policies and goals.
Deposits, investments, loans from pension fund
44(8)Every deposit of, investment of and loan from the assets of a pension fund on or after the commencement of section 58 of the Act shall be made or held in the name of or for the account of the pension fund.
Loans or investments before commencement of s.58 of the Act
44(9)Subsection (7) does not apply to an investment or loan made before the commencement of section 58 of the Act until
(a) the date on which the term of the investment or loan expires, or
(b) five years after the date of commencement of section 58 of the Act,
whichever occurs first.
Limits on investments and lending
44(10)At the time when
(a) an investment from the assets of a pension fund is made in the securities of, or
(b) a loan of the assets of a pension fund is made to,
one person or a combination of related persons, the total of such investments and loans shall not exceed ten per cent of the book value of the fund’s assets.
Limits on investments and lending
44(11)Subsection (10) does not apply to an investment in
(a) deposits with a bank, a loan or trust company or a credit union or caisse populaire to the extent that the deposits are fully insured by the Canada Deposit Insurance Corporation, the Quebec Deposit Insurance Board, the Ontario Share and Deposit Insurance Corporation or any other such provincial government deposit insurance corporation in Canada,
(b) segregated, mutual or pooled funds that comply with the requirements of this section and sections 45 and 46,
(c) the shares of a corporation
(i) the assets of which are at least ninety-eight per cent cash, investments and loans,
(ii) that does not issue debt obligations, and
(iii) that obtains at least ninety-eight per cent of its income from investments and loans,
if the corporation is limited in its investments to those the pension plan may make under this section and sections 45 and 46, and
(d) issued bonds or debentures of or guaranteed by the Government of Canada, a province or territory of Canada, the International Bank for Reconstruction and Development established by the Agreements for an International Monetary Fund and the International Bank for Reconstruction and Development approved by section 2 of the Bretton Woods Agreements Act (Canada), the Inter-American Development Bank, the Carribean Development Bank or the Asian Development Bank.
Limits on investments and lending
44(12)A pension fund shall not own more than thirty per cent of the voting shares of a corporation.
Limits on investments and lending
44(13)Subsection (12) does not apply to a corporation that was incorporated solely for the purpose of and that limits its activities to allowing a pension fund to avail itself of either
(a) expertise not otherwise available to the fund, or
(b) an investment opportunity in real estate, resource property or venture capital.
Limits on investments and lending
44(14)The assets of the fund of a pension plan shall not be loaned to or, except where they are traded publicly, invested in the securities of
(a) the administrator or, if the administrator is a pension committee or a board of trustees, a member of the committee or board,
(b) an officer or employee of the administrator,
(c) a person responsible for holding or investing the money of the pension fund or any officer or employee of such person,
(d) a trade union representing members of the pension plan or an officer or employee of the trade union,
(e) an employer who contributes to the plan, an employee of the employer and, where the employer is a corporation, an officer or director of the employer,
(f) the spouse, common-law partner or child of any person referred to in paragraphs (a) to (e),
(g) if the employer is a corporation
(i) any person who directly or indirectly holds more than ten per cent of the voting shares carrying more than ten per cent of the voting rights attached to all voting securities of the corporation or the spouse, common-law partner or child of such person, or
(ii) any person who directly or indirectly, together with a spouse, common-law partner or child, holds more than ten per cent of the voting shares carrying more than ten per cent of the voting rights attached to all voting securities of the corporation,
(h) a corporation that is an affiliate of the employer, or
(i) a corporation wholly owned or controlled either directly or indirectly by a person referred to in paragraph (a) or (g).
Limits on investments and lending
44(15)Despite subsection (14), the assets of a pension fund may be loaned to an employee of the employer or to the spouse, common-law partner or child of the employee on the security of a mortgage on residential property of the employee, spouse, common-law partner or child if the mortgage is guaranteed or insured by or through an agency of the Government of Canada or a province or territory of Canada or insured by a policy of mortgage insurance issued by an insurance company authorized to carry on business in Canada.
Limits on investments and lending
44(16)The administrator of a pension plan may lend the assets of the pension fund if
(a) the lending is permitted in the written statement of investment policies and goals, and
(b) the loans are secured by cash or readily marketable investments having a market value of at least 102% of the loan and maintained at least once daily to ensure a market value of the collateral of at least 102% of the outstanding market value of loaned assets.
2011-60; 2015-59
Definitions
44(1)In this section
“book value” means the cost of acquisition of an asset of a pension fund, including all direct costs associated with the acquisition, before any external financing;(valeur comptable)
“mutual fund” means a fund established by a corporation duly authorized to operate the fund, the assets of which are comprised of investments from more than one depositor and shares of which are allocated to each depositor in order to establish the proportionate interest of each depositor at any time in the assets of the fund;(fonds mutuel)
“pooled fund” means a fund established by a corporation duly authorized to operate the fund, the assets of which are comprised of investments from more than one depositor and shares of which are allocated to each depositor in order to establish the proportionate interest of each depositor at any time in the assets of the fund;(fonds mis en commun)
“related person” means a person deemed to be related under paragraph (2)(g);(personne liée)
“security” means a document, instrument or writing commonly known as a security and includes a share of any class or series of shares or a debt instrument of a corporation, a certificate evidencing such a share or debt obligation, a warrant, an option, a future and a commodity;(valeur mobilière)
“segregated fund” means a fund established by a corporation duly authorized to operate the fund, the assets of which are comprised of investments from more than one contributor and are maintained by the corporation separately and distinctly from the assets of its general funds;(fonds réservé)
“subsidiary” means a corporation deemed to be a subsidiary under paragraph (2)(c);(filiale)
“traded publicly” means traded on (négocié publiquement)
(a) a provincially regulated stock exchange in Canada, or
(b) any other market on which securities are traded if the prices at which they have been traded on that market are regularly published in a newspaper or business or financial publication having a general and regular paid circulation or in a publication regularly distributed by an investment or securities dealer;
“voting share” means a share of any class of shares of a corporation that carries voting rights under all circumstances and any share of any class of shares that carries voting rights as a result of the occurrence of a contingency that has occurred and continues to occur.(action avec droit de vote)
Affiliates, subsidiaries, control
44(2)For the purposes of this Regulation
(a) a corporation shall be deemed to be an affiliate of another if
(i) it is the subsidiary of the other,
(ii) both corporations are subsidiaries of a third corporation, or
(iii) both corporations are controlled by the same person,
(b) an affiliate of a corporation shall be deemed to be an affiliate of every other affiliate of the corporation,
(c) a corporation shall be deemed to be the subsidiary of another if it is controlled by
(i) the other,
(ii) that other and one or more other corporations all of which are controlled by that other, or
(iii) one or more corporations, all of which are controlled by that other,
(d) a corporation shall be deemed to be controlled by a person if
(i) the person holds, other than by way of security, by or for the benefit of only that person, voting shares of the corporation that carry more than fifty per cent of the votes for the election of directors, and
(ii) the votes referred to in subparagraph (i) are sufficient, if exercised, to elect a majority of the board of directors of the corporation,
(e) a corporation shall be deemed to be the holding corporation of all its subsidiaries,
(f) a person who controls a corporation shall be deemed to own all the voting shares owned by the corporation, and
(g) a person shall be deemed to be related to
(i) any corporation that the person controls and any affiliate of any such corporation,
(ii) any partner of the person who has substantial beneficial interest in a partnership in which the person has a substantial beneficial interest,
(iii) a trust or estate in which the person has a substantial beneficial interest or of which the person serves as a trustee or in a capacity similar to a trustee,
(iv) the spouse or common-law partner and every child of the person, and
(v) any relative of the person or of the person’s spouse or common-law partner.
Statement of investment policies and goals of pension plan
44(3)The administrator of a pension plan shall establish, adopt and follow a written statement of investment policies and goals for the plan which shall be tailored to the type of pension plan administered and the nature of its liabilities and which shall, unless the Superintendent authorizes otherwise, include the following:
(a) the investment portfolio diversification, including the total and individual investment limits;
(b) the asset mix policy and rate of return expectations;
(c) the categories and sub-categories of investments and loans that may be made;
(d) the policy to be followed where there is an actual or perceived conflict of interest on the part of the administrator, a member of a pension committee, board of trustees or any board, agency or commission acting as the administrator or any employee or agent of the administrator;
(e) minimum disclosure requirements with respect to the actual or perceived conflict of interest, including the timing of the disclosure;
(f) the lending of cash or securities;
(g) the retention or delegation of voting rights acquired through pension plan investments; and
(h) the basis for the valuation of investments that are not regularly traded.
Statement of investment policies and goals of pension plan
44(4)The selection of investments to be permitted under the written statement of policies and goals shall be made in consideration of the overall context of the existing or proposed investment portfolio, without undue risk of loss or impairment to the pension fund and with a reasonable expectation of fair return or appreciation to the fund, given the nature of the investment.
Statement of investment policies and goals of pension plan
44(5)The administrator shall review the written statement of investment policies and goals referred to in subsection (3) within three years after the later of
(a) the date on which the administrator establishes and adopts the statement, and
(b) if applicable, the commencement date of this Regulation,
and subsequently at intervals of not more than three years, with each interval commencing to run on the immediately preceding review date.
Statement of investment policies and goals of pension plan
44(6)An administrator reviewing a written statement of investment policies and goals under subsection (5) shall
(a) if no amendments are to be made to the statement, notify the Superintendent in writing to that effect, or
(b) if amendments are made to the statement, apply for registration of the amendments in accordance with section 11 of the Act and with the regulations.
Statement of investment policies and goals of pension plan
44(7)No person shall select an investment of or make a loan from a pension fund unless the investment or loan is permissible under the written statement of investment policies and goals.
Deposits, investments, loans from pension fund
44(8)Every deposit of, investment of and loan from the assets of a pension fund on or after the commencement of section 58 of the Act shall be made or held in the name of or for the account of the pension fund.
Loans or investments before commencement of s.58 of the Act
44(9)Subsection (7) does not apply to an investment or loan made before the commencement of section 58 of the Act until
(a) the date on which the term of the investment or loan expires, or
(b) five years after the date of commencement of section 58 of the Act,
whichever occurs first.
Limits on investments and lending
44(10)At the time when
(a) an investment from the assets of a pension fund is made in the securities of, or
(b) a loan of the assets of a pension fund is made to,
one person or a combination of related persons, the total of such investments and loans shall not exceed ten per cent of the book value of the fund’s assets.
Limits on investments and lending
44(11)Subsection (10) does not apply to an investment in
(a) deposits with a bank, a loan or trust company or a credit union or caisse populaire to the extent that the deposits are fully insured by the Canada Deposit Insurance Corporation, the Quebec Deposit Insurance Board, the Ontario Share and Deposit Insurance Corporation or any other such provincial government deposit insurance corporation in Canada,
(b) segregated, mutual or pooled funds that comply with the requirements of this section and sections 45 and 46,
(c) the shares of a corporation
(i) the assets of which are at least ninety-eight per cent cash, investments and loans,
(ii) that does not issue debt obligations, and
(iii) that obtains at least ninety-eight per cent of its income from investments and loans,
if the corporation is limited in its investments to those the pension plan may make under this section and sections 45 and 46, and
(d) issued bonds or debentures of or guaranteed by the Government of Canada, a province or territory of Canada, the International Bank for Reconstruction and Development established by the Agreements for an International Monetary Fund and the International Bank for Reconstruction and Development approved by section 2 of the Bretton Woods Agreements Act (Canada), the Inter-American Development Bank, the Carribean Development Bank or the Asian Development Bank.
Limits on investments and lending
44(12)A pension fund shall not own more than thirty per cent of the voting shares of a corporation.
Limits on investments and lending
44(13)Subsection (12) does not apply to a corporation that was incorporated solely for the purpose of and that limits its activities to allowing a pension fund to avail itself of either
(a) expertise not otherwise available to the fund, or
(b) an investment opportunity in real estate, resource property or venture capital.
Limits on investments and lending
44(14)The assets of the fund of a pension plan shall not be loaned to or, except where they are traded publicly, invested in the securities of
(a) the administrator or, if the administrator is a pension committee or a board of trustees, a member of the committee or board,
(b) an officer or employee of the administrator,
(c) a person responsible for holding or investing the money of the pension fund or any officer or employee of such person,
(d) a trade union representing members of the pension plan or an officer or employee of the trade union,
(e) an employer who contributes to the plan, an employee of the employer and, where the employer is a corporation, an officer or director of the employer,
(f) the spouse, common-law partner or child of any person referred to in paragraphs (a) to (e),
(g) if the employer is a corporation
(i) any person who directly or indirectly holds more than ten per cent of the voting shares carrying more than ten per cent of the voting rights attached to all voting securities of the corporation or the spouse, common-law partner or child of such person, or
(ii) any person who directly or indirectly, together with a spouse, common-law partner or child, holds more than ten per cent of the voting shares carrying more than ten per cent of the voting rights attached to all voting securities of the corporation,
(h) a corporation that is an affiliate of the employer, or
(i) a corporation wholly owned or controlled either directly or indirectly by a person referred to in paragraph (a) or (g).
Limits on investments and lending
44(15)Despite subsection (14), the assets of a pension fund may be loaned to an employee of the employer or to the spouse, common-law partner or child of the employee on the security of a mortgage on residential property of the employee, spouse, common-law partner or child if the mortgage is guaranteed or insured by or through an agency of the Government of Canada or a province or territory of Canada or insured by a policy of mortgage insurance issued by an insurance company authorized to carry on business in Canada.
Limits on investments and lending
44(16)The administrator of a pension plan may lend the assets of the pension fund if
(a) the lending is permitted in the written statement of investment policies and goals, and
(b) the loans are secured by cash or readily marketable investments having a market value of at least one hundred and five per cent of the loan and maintained at least once weekly to ensure a market value of the collateral of at least one hundred and five per cent of the outstanding market value of loaned assets.
2011-60
Definitions
44(1)In this section
“book value” means the cost of acquisition of an asset of a pension fund, including all direct costs associated with the acquisition, before any external financing;(valeur comptable)
“mutual fund” means a fund established by a corporation duly authorized to operate the fund, the assets of which are comprised of investments from more than one depositor and shares of which are allocated to each depositor in order to establish the proportionate interest of each depositor at any time in the assets of the fund;(fonds mutuel)
“pooled fund” means a fund established by a corporation duly authorized to operate the fund, the assets of which are comprised of investments from more than one depositor and shares of which are allocated to each depositor in order to establish the proportionate interest of each depositor at any time in the assets of the fund;(fonds mis en commun)
“related person” means a person deemed to be related under paragraph (2)(g);(personne liée)
“security” means a document, instrument or writing commonly known as a security and includes a share of any class or series of shares or a debt instrument of a corporation, a certificate evidencing such a share or debt obligation, a warrant, an option, a future and a commodity;(valeur mobilière)
“segregated fund” means a fund established by a corporation duly authorized to operate the fund, the assets of which are comprised of investments from more than one contributor and are maintained by the corporation separately and distinctly from the assets of its general funds;(fonds réservé)
“subsidiary” means a corporation deemed to be a subsidiary under paragraph (2)(c);(filiale)
“traded publicly” means traded on (négocié publiquement)
(a) a provincially regulated stock exchange in Canada, or
(b) any other market on which securities are traded if the prices at which they have been traded on that market are regularly published in a newspaper or business or financial publication having a general and regular paid circulation or in a publication regularly distributed by an investment or securities dealer;
“voting share” means a share of any class of shares of a corporation that carries voting rights under all circumstances and any share of any class of shares that carries voting rights as a result of the occurrence of a contingency that has occurred and continues to occur.(action avec droit de vote)
Affiliates, subsidiaries, control
44(2)For the purposes of this Regulation
(a) a corporation shall be deemed to be an affiliate of another if
(i) it is the subsidiary of the other,
(ii) both corporations are subsidiaries of a third corporation, or
(iii) both corporations are controlled by the same person,
(b) an affiliate of a corporation shall be deemed to be an affiliate of every other affiliate of the corporation,
(c) a corporation shall be deemed to be the subsidiary of another if it is controlled by
(i) the other,
(ii) that other and one or more other corporations all of which are controlled by that other, or
(iii) one or more corporations, all of which are controlled by that other,
(d) a corporation shall be deemed to be controlled by a person if
(i) the person holds, other than by way of security, by or for the benefit of only that person, voting shares of the corporation that carry more than fifty per cent of the votes for the election of directors, and
(ii) the votes referred to in subparagraph (i) are sufficient, if exercised, to elect a majority of the board of directors of the corporation,
(e) a corporation shall be deemed to be the holding corporation of all its subsidiaries,
(f) a person who controls a corporation shall be deemed to own all the voting shares owned by the corporation, and
(g) a person shall be deemed to be related to
(i) any corporation that the person controls and any affiliate of any such corporation,
(ii) any partner of the person who has substantial beneficial interest in a partnership in which the person has a substantial beneficial interest,
(iii) a trust or estate in which the person has a substantial beneficial interest or of which the person serves as a trustee or in a capacity similar to a trustee,
(iv) the spouse or common-law partner and every child of the person, and
(v) any relative of the person or of the person’s spouse or common-law partner.
Statement of investment policies and goals of pension plan
44(3)The administrator of a pension plan shall establish, adopt and follow a written statement of investment policies and goals for the plan which shall be tailored to the type of pension plan administered and the nature of its liabilities and which shall, unless the Superintendent authorizes otherwise, include the following:
(a) the investment portfolio diversification, including the total and individual investment limits;
(b) the asset mix policy and rate of return expectations;
(c) the categories and sub-categories of investments and loans that may be made;
(d) the policy to be followed where there is an actual or perceived conflict of interest on the part of the administrator, a member of a pension committee, board of trustees or any board, agency or commission acting as the administrator or any employee or agent of the administrator;
(e) minimum disclosure requirements with respect to the actual or perceived conflict of interest, including the timing of the disclosure;
(f) the lending of cash or securities;
(g) the retention or delegation of voting rights acquired through pension plan investments; and
(h) the basis for the valuation of investments that are not regularly traded.
Statement of investment policies and goals of pension plan
44(4)The selection of investments to be permitted under the written statement of policies and goals shall be made in consideration of the overall context of the existing or proposed investment portfolio, without undue risk of loss or impairment to the pension fund and with a reasonable expectation of fair return or appreciation to the fund, given the nature of the investment.
Statement of investment policies and goals of pension plan
44(5)The administrator shall review the written statement of investment policies and goals referred to in subsection (3) within three years after the later of
(a) the date on which the administrator establishes and adopts the statement, and
(b) if applicable, the commencement date of this Regulation,
and subsequently at intervals of not more than three years, with each interval commencing to run on the immediately preceding review date.
Statement of investment policies and goals of pension plan
44(6)An administrator reviewing a written statement of investment policies and goals under subsection (5) shall
(a) if no amendments are to be made to the statement, notify the Superintendent in writing to that effect, or
(b) if amendments are made to the statement, apply for registration of the amendments in accordance with section 11 of the Act and with the regulations.
Statement of investment policies and goals of pension plan
44(7)No person shall select an investment of or make a loan from a pension fund unless the investment or loan is permissible under the written statement of investment policies and goals.
Deposits, investments, loans from pension fund
44(8)Every deposit of, investment of and loan from the assets of a pension fund on or after the commencement of section 58 of the Act shall be made or held in the name of or for the account of the pension fund.
Loans or investments before commencement of s.58 of the Act
44(9)Subsection (7) does not apply to an investment or loan made before the commencement of section 58 of the Act until
(a) the date on which the term of the investment or loan expires, or
(b) five years after the date of commencement of section 58 of the Act,
whichever occurs first.
Limits on investments and lending
44(10)At the time when
(a) an investment from the assets of a pension fund is made in the securities of, or
(b) a loan of the assets of a pension fund is made to,
one person or a combination of related persons, the total of such investments and loans shall not exceed ten per cent of the book value of the fund’s assets.
Limits on investments and lending
44(11)Subsection (10) does not apply to an investment in
(a) deposits with a bank, a loan or trust company or a credit union or caisse populaire to the extent that the deposits are fully insured by the Canada Deposit Insurance Corporation, the Quebec Deposit Insurance Board, the Ontario Share and Deposit Insurance Corporation or any other such provincial government deposit insurance corporation in Canada,
(b) segregated, mutual or pooled funds that comply with the requirements of this section and sections 45 and 46,
(c) the shares of a corporation
(i) the assets of which are at least ninety-eight per cent cash, investments and loans,
(ii) that does not issue debt obligations, and
(iii) that obtains at least ninety-eight per cent of its income from investments and loans,
if the corporation is limited in its investments to those the pension plan may make under this section and sections 45 and 46, and
(d) issued bonds or debentures of or guaranteed by the Government of Canada, a province or territory of Canada, the International Bank for Reconstruction and Development established by the Agreements for an International Monetary Fund and the International Bank for Reconstruction and Development approved by section 2 of the Bretton Woods Agreements Act (Canada), the Inter-American Development Bank, the Carribean Development Bank or the Asian Development Bank.
Limits on investments and lending
44(12)A pension fund shall not own more than thirty per cent of the voting shares of a corporation.
Limits on investments and lending
44(13)Subsection (12) does not apply to a corporation that was incorporated solely for the purpose of and that limits its activities to allowing a pension fund to avail itself of either
(a) expertise not otherwise available to the fund, or
(b) an investment opportunity in real estate, resource property or venture capital.
Limits on investments and lending
44(14)The assets of the fund of a pension plan shall not be loaned to or, except where they are traded publicly, invested in the securities of
(a) the administrator or, if the administrator is a pension committee or a board of trustees, a member of the committee or board,
(b) an officer or employee of the administrator,
(c) a person responsible for holding or investing the money of the pension fund or any officer or employee of such person,
(d) a trade union representing members of the pension plan or an officer or employee of the trade union,
(e) an employer who contributes to the plan, an employee of the employer and, where the employer is a corporation, an officer or director of the employer,
(f) the spouse, common-law partner or child of any person referred to in paragraphs (a) to (e),
(g) if the employer is a corporation
(i) any person who directly or indirectly holds more than ten per cent of the voting shares carrying more than ten per cent of the voting rights attached to all voting securities of the corporation or the spouse, common-law partner or child of such person, or
(ii) any person who directly or indirectly, together with a spouse, common-law partner or child, holds more than ten per cent of the voting shares carrying more than ten per cent of the voting rights attached to all voting securities of the corporation,
(h) a corporation that is an affiliate of the employer, or
(i) a corporation wholly owned or controlled either directly or indirectly by a person referred to in paragraph (a) or (g).
Limits on investments and lending
44(15)Despite subsection (14), the assets of a pension fund may be loaned to an employee of the employer or to the spouse, common-law partner or child of the employee on the security of a mortgage on residential property of the employee, spouse, common-law partner or child if the mortgage is guaranteed or insured by or through an agency of the Government of Canada or a province or territory of Canada or insured by a policy of mortgage insurance issued by an insurance company authorized to carry on business in Canada.
Limits on investments and lending
44(16)The administrator of a pension plan may lend the assets of the pension fund if
(a) the lending is permitted in the written statement of investment policies and goals, and
(b) the loans are secured by cash or readily marketable investments having a market value of at least one hundred and five per cent of the loan and maintained at least once weekly to ensure a market value of the collateral of at least one hundred and five per cent of the outstanding market value of loaned assets.
2011-60
Definitions
44(1)In this section
“book value” means the cost of acquisition of an asset of a pension fund, including all direct costs associated with the acquisition, before any external financing;(valeur comptable)
“mutual fund” means a fund established by a corporation duly authorized to operate the fund, the assets of which are comprised of investments from more than one depositor and shares of which are allocated to each depositor in order to establish the proportionate interest of each depositor at any time in the assets of the fund;(fonds mutuel)
“pooled fund” means a fund established by a corporation duly authorized to operate the fund, the assets of which are comprised of investments from more than one depositor and shares of which are allocated to each depositor in order to establish the proportionate interest of each depositor at any time in the assets of the fund;(fonds mis en commun)
“related person” means a person deemed to be related under paragraph (2)(g);(personne liée)
“security” means a document, instrument or writing commonly known as a security and includes a share of any class or series of shares or a debt instrument of a corporation, a certificate evidencing such a share or debt obligation, a warrant, an option, a future and a commodity;(valeur mobilière)
“segregated fund” means a fund established by a corporation duly authorized to operate the fund, the assets of which are comprised of investments from more than one contributor and are maintained by the corporation separately and distinctly from the assets of its general funds;(fonds réservé)
“subsidiary” means a corporation deemed to be a subsidiary under paragraph (2)(c);(filiale)
“traded publicly” means traded on (négocié publiquement)
(a) a provincially regulated stock exchange in Canada, or
(b) any other market on which securities are traded if the prices at which they have been traded on that market are regularly published in a newspaper or business or financial publication having a general and regular paid circulation or in a publication regularly distributed by an investment or securities dealer;
“voting share” means a share of any class of shares of a corporation that carries voting rights under all circumstances and any share of any class of shares that carries voting rights as a result of the occurrence of a contingency that has occurred and continues to occur.(action avec droit de vote)
Affiliates, subsidiaries, control
44(2)For the purposes of this Regulation
(a) a corporation shall be deemed to be an affiliate of another if
(i) it is the subsidiary of the other,
(ii) both corporations are subsidiaries of a third corporation, or
(iii) both corporations are controlled by the same person,
(b) an affiliate of a corporation shall be deemed to be an affiliate of every other affiliate of the corporation,
(c) a corporation shall be deemed to be the subsidiary of another if it is controlled by
(i) the other,
(ii) that other and one or more other corporations all of which are controlled by that other, or
(iii) one or more corporations, all of which are controlled by that other,
(d) a corporation shall be deemed to be controlled by a person if
(i) the person holds, other than by way of security, by or for the benefit of only that person, voting shares of the corporation that carry more than fifty per cent of the votes for the election of directors, and
(ii) the votes referred to in subparagraph (i) are sufficient, if exercised, to elect a majority of the board of directors of the corporation,
(e) a corporation shall be deemed to be the holding corporation of all its subsidiaries,
(f) a person who controls a corporation shall be deemed to own all the voting shares owned by the corporation, and
(g) a person shall be deemed to be related to
(i) any corporation that the person controls and any affiliate of any such corporation,
(ii) any partner of the person who has substantial beneficial interest in a partnership in which the person has a substantial beneficial interest,
(iii) a trust or estate in which the person has a substantial beneficial interest or of which the person serves as a trustee or in a capacity similar to a trustee,
(iv) the spouse and every child of the person, and
(v) any relative of the person or of the person’s spouse.
Statement of investment policies and goals of pension plan
44(3)The administrator of a pension plan shall establish, adopt and follow a written statement of investment policies and goals for the plan which shall be tailored to the type of pension plan administered and the nature of its liabilities and which shall, unless the Superintendent authorizes otherwise, include the following:
(a) the investment portfolio diversification, including the total and individual investment limits;
(b) the asset mix policy and rate of return expectations;
(c) the categories and sub-categories of investments and loans that may be made;
(d) the policy to be followed where there is an actual or perceived conflict of interest on the part of the administrator, a member of a pension committee, board of trustees or any board, agency or commission acting as the administrator or any employee or agent of the administrator;
(e) minimum disclosure requirements with respect to the actual or perceived conflict of interest, including the timing of the disclosure;
(f) the lending of cash or securities;
(g) the retention or delegation of voting rights acquired through pension plan investments; and
(h) the basis for the valuation of investments that are not regularly traded.
Statement of investment policies and goals of pension plan
44(4)The selection of investments to be permitted under the written statement of policies and goals shall be made in consideration of the overall context of the existing or proposed investment portfolio, without undue risk of loss or impairment to the pension fund and with a reasonable expectation of fair return or appreciation to the fund, given the nature of the investment.
Statement of investment policies and goals of pension plan
44(5)The administrator shall review the written statement of investment policies and goals referred to in subsection (3) within three years after the later of
(a) the date on which the administrator establishes and adopts the statement, and
(b) if applicable, the commencement date of this Regulation,
and subsequently at intervals of not more than three years, with each interval commencing to run on the immediately preceding review date.
Statement of investment policies and goals of pension plan
44(6)An administrator reviewing a written statement of investment policies and goals under subsection (5) shall
(a) if no amendments are to be made to the statement, notify the Superintendent in writing to that effect, or
(b) if amendments are made to the statement, apply for registration of the amendments in accordance with section 11 of the Act and with the regulations.
Statement of investment policies and goals of pension plan
44(7)No person shall select an investment of or make a loan from a pension fund unless the investment or loan is permissible under the written statement of investment policies and goals.
Deposits, investments, loans from pension fund
44(8)Every deposit of, investment of and loan from the assets of a pension fund on or after the commencement of section 58 of the Act shall be made or held in the name of or for the account of the pension fund.
Loans or investments before commencement of s.58 of the Act
44(9)Subsection (7) does not apply to an investment or loan made before the commencement of section 58 of the Act until
(a) the date on which the term of the investment or loan expires, or
(b) five years after the date of commencement of section 58 of the Act,
whichever occurs first.
Limits on investments and lending
44(10)At the time when
(a) an investment from the assets of a pension fund is made in the securities of, or
(b) a loan of the assets of a pension fund is made to,
one person or a combination of related persons, the total of such investments and loans shall not exceed ten per cent of the book value of the fund’s assets.
Limits on investments and lending
44(11)Subsection (10) does not apply to an investment in
(a) deposits with a bank, a loan or trust company or a credit union or caisse populaire to the extent that the deposits are fully insured by the Canada Deposit Insurance Corporation, the Quebec Deposit Insurance Board, the Ontario Share and Deposit Insurance Corporation or any other such provincial government deposit insurance corporation in Canada,
(b) segregated, mutual or pooled funds that comply with the requirements of this section and sections 45 and 46,
(c) the shares of a corporation
(i) the assets of which are at least ninety-eight per cent cash, investments and loans,
(ii) that does not issue debt obligations, and
(iii) that obtains at least ninety-eight per cent of its income from investments and loans,
if the corporation is limited in its investments to those the pension plan may make under this section and sections 45 and 46, and
(d) issued bonds or debentures of or guaranteed by the Government of Canada, a province or territory of Canada, the International Bank for Reconstruction and Development established by the Agreements for an International Monetary Fund and the International Bank for Reconstruction and Development approved by section 2 of the Bretton Woods Agreements Act (Canada), the Inter-American Development Bank, the Carribean Development Bank or the Asian Development Bank.
Limits on investments and lending
44(12)A pension fund shall not own more than thirty per cent of the voting shares of a corporation.
Limits on investments and lending
44(13)Subsection (12) does not apply to a corporation that was incorporated solely for the purpose of and that limits its activities to allowing a pension fund to avail itself of either
(a) expertise not otherwise available to the fund, or
(b) an investment opportunity in real estate, resource property or venture capital.
Limits on investments and lending
44(14)The assets of the fund of a pension plan shall not be loaned to or, except where they are traded publicly, invested in the securities of
(a) the administrator or, if the administrator is a pension committee or a board of trustees, a member of the committee or board,
(b) an officer or employee of the administrator,
(c) a person responsible for holding or investing the money of the pension fund or any officer or employee of such person,
(d) a trade union representing members of the pension plan or an officer or employee of the trade union,
(e) an employer who contributes to the plan, an employee of the employer and, where the employer is a corporation, an officer or director of the employer,
(f) the spouse or child of any person referred to in paragraphs (a) to (e),
(g) if the employer is a corporation
(i) any person who directly or indirectly holds more than ten per cent of the voting shares carrying more than ten per cent of the voting rights attached to all voting securities of the corporation or the spouse or child of such person, or
(ii) any person who directly or indirectly, together with a spouse or child, holds more than ten per cent of the voting shares carrying more than ten per cent of the voting rights attached to all voting securities of the corporation,
(h) a corporation that is an affiliate of the employer, or
(i) a corporation wholly owned or controlled either directly or indirectly by a person referred to in paragraph (a) or (g).
Limits on investments and lending
44(15)Notwithstanding subsection (14), the assets of a pension fund may be loaned to an employee of the employer or to the spouse or child of such employee on the security of a mortgage on residential property of the employee, spouse or child if the mortgage is guaranteed or insured by or through an agency of the Government of Canada or a province or territory of Canada or insured by a policy of mortgage insurance issued by an insurance company authorized to carry on business in Canada.
Limits on investments and lending
44(16)The administrator of a pension plan may lend the assets of the pension fund if
(a) the lending is permitted in the written statement of investment policies and goals, and
(b) the loans are secured by cash or readily marketable investments having a market value of at least one hundred and five per cent of the loan and maintained at least once weekly to ensure a market value of the collateral of at least one hundred and five per cent of the outstanding market value of loaned assets.