Act
Proposed Legislative Amendments to the Trustee Act
Regulation Number(s):
N/A
Instrument Type:
Act
Bill or Act:
Trustee Act
Summary of Proposal:
The Trustee Act currently allows trustees to invest in mutual funds, pooled funds and segregated funds under variable insurance contracts, and to delegate their investment functions to an investment manager. Investment managers are not allowed to sub-delegate their investment functions.
The Trustee Act does not expressly permit investment managers to invest in mutual funds, pooled funds and segregated funds under variable insurance contracts. Consequently, there is some uncertainty as to whether this is permitted.
The Ministry of the Attorney General is proposing to amend section 27.2 of the Trustee Act to clarify that investment managers with delegated authority to invest trust assets may invest in mutual funds, pooled funds and segregated funds under variable insurance contracts.
An unrelated correction would also be made to the French version of the Act.
The Trustee Act does not expressly permit investment managers to invest in mutual funds, pooled funds and segregated funds under variable insurance contracts. Consequently, there is some uncertainty as to whether this is permitted.
The Ministry of the Attorney General is proposing to amend section 27.2 of the Trustee Act to clarify that investment managers with delegated authority to invest trust assets may invest in mutual funds, pooled funds and segregated funds under variable insurance contracts.
An unrelated correction would also be made to the French version of the Act.
Analysis of Regulatory Impact:
The amendment would align with industry practice and provide greater certainty to those responsible for the investment of trust assets. There are no direct impacts, including compliance costs, associated with the legislative proposal.
Further Information:
Proposal Number:
23-MAG003
Posting Date:
April 3, 2023
Comments Due Date:
May 18, 2023
Contact Address:
Ministry of the Attorney General
Corporate Policy Unit
720 Bay Street, 3rd Floor
Toronto, ON M7A 2S9
Corporate Policy Unit
720 Bay Street, 3rd Floor
Toronto, ON M7A 2S9