Regulation - LGIC
Description of Proposed Amendment to Regulation 909 under the Pension Benefits Act - Eliminating the 30% Rule for Pension Investment
Regulation Number(s):
Regulation 909
Instrument Type:
Regulation - LGIC
Bill or Act:
Pension Benefits Act
Summary of Proposal:
In the 2015 Ontario Economic Outlook and Fiscal Review, the Province announced its intention to eliminate the rule that restricts a pension plan from investing in more than 30% of the voting shares of a corporation, known as the "30% rule".
Eliminating the 30% rule could open up new investment opportunities and tap the capacity of the pension sector to contribute more to economic growth.
Pension plan administrators would continue to be required to exercise a fiduciary standard of care, diligence and skill in the administration and investment of the pension fund.
Members' benefits would not be directly affected as a result of the proposed elimination of the 30% rule.
The attached description outlines possible disclosure requirements and undertakings that could apply to a plan administrator as a result of eliminating the rule that prohibits a pension plan from investing in more than 30% of the voting shares of any corporation.
The description requests feedback on the amendments being considered to Regulation 909 under the Pension Benefits Act.
Eliminating the 30% rule could open up new investment opportunities and tap the capacity of the pension sector to contribute more to economic growth.
Pension plan administrators would continue to be required to exercise a fiduciary standard of care, diligence and skill in the administration and investment of the pension fund.
Members' benefits would not be directly affected as a result of the proposed elimination of the 30% rule.
The attached description outlines possible disclosure requirements and undertakings that could apply to a plan administrator as a result of eliminating the rule that prohibits a pension plan from investing in more than 30% of the voting shares of any corporation.
The description requests feedback on the amendments being considered to Regulation 909 under the Pension Benefits Act.
Further Information:
Eliminating the 30 per cent rule for Pension Investment
(Download Adobe Reader)
Pension Benefits Act (PBA)
Regulation 909 to PBA
Federal Investment Rules
Proposal Number:
16-MOF007
Posting Date:
March 14, 2016
Comments Due Date:
April 29, 2016
Contact Address:
Pension Policy Branch
Eliminating the 30% Rule for Pension Investment
Ministry of Finance
5th Floor, Frost Building South
7 Queen's Park Crescent East
Toronto, ON
M7A 1Y7
Pension.feedback@ontario.ca
Eliminating the 30% Rule for Pension Investment
Ministry of Finance
5th Floor, Frost Building South
7 Queen's Park Crescent East
Toronto, ON
M7A 1Y7
Pension.feedback@ontario.ca