New Federal Investment Rules for Pension Plans

The long-awaited revisions to the federal investment rules that apply to most registered pension plans in Canada, including Personal Pension Plans, are finally out.

?The 10% book value test found in the concentration limits portion of the rules is now going to be a 10% of market value test, but need only be complied with at the time of the acquisition transaction.

The 'nominal and immaterial' exception to the related party transaction prohibition which was slated for elimination was kept.

Overall, comments made by the pension industry seem to have influenced the final rules released, which are to come into effect on July 1, 2016.