Carol E. Derk  

Partner

Executive Summary

Carol Derk is a partner in the Toronto office of Borden Ladner Gervais LLP. She is the National Leader of the Firm's Derivatives Group and the National Co-Leader of the Firm's Cryptocurrency and Blockchain group.

Carol practices in the area of securities law, specializing in investment management funds. She works extensively for managers of mutual funds, exchange-traded funds and other investment funds, particularly in the area of new product development. Carol has an extensive derivatives practice, primarily for investment and pension funds. She acts for investment funds and other entities that use derivatives, including negotiating the ISDA, futures and other standard documentation, advising on derivatives regulatory compliance matters and developing new derivatives-based products. Carol also practices in the blockchain and digital currency and asset space, advising investment funds and others that focus on, or are involved with, cryptocurrencies and blockchain technology.

Representative Work

  • Member of the BLG team that represented First Block Capital Inc. in connection with its registration as an investment fund manager and an exempt market dealer in order to operate a bitcoin investment fund, the first registration of an investment fund manager in Canada solely dedicated to cryptocurrency investments. Also acted in connection with the private placement of units of the bitcoin fund to investors in Canada and abroad.
  • Advises public and private investment funds on all issues relating to digital assets and derivatives on digital assets.
  • Advises investment fund managers on novel and structured products for mutual funds, exchange-traded funds, closed-end funds, pooled funds and other types of investment products. For example:
    • Advised Mackenzie Financial Corporation when it introduced the first multi-series mutual funds into the Canadian marketplace;
    • Worked with fund managers to create the first guaranteed investment products and target date funds; and
    • Advised Invesco Canada when it introduced the first mutual fund-on-US exchange-traded fund structure.
  • Acts for investment funds and other investment vehicles that use derivatives as part of their investment strategies. For example:
    • Worked with Mackenzie Financial Corporation to create the first RSP clone fund structure that used derivatives to provide investors with exposure to foreign property through a Canadian investment for tax purposes;
    • Works with numerous fund managers to create tax effective funds that use derivatives to convert income into capital gains; and
    • Assists pooled funds to create tax effective structures through the use of derivatives, both onshore and offshore.
  • Acts for manufacturers of exchange-traded funds in connection with the creation and ongoing operations of these funds.
  • Advises investment funds regarding the use of securities lending, repurchase and reverse repurchase transactions.

Publications & Presentations

Rankings & Recognitions

  • Recognized in the 2019 edition of Best Lawyers in Canada (Mutual Funds Law).
  • In every edition of The Canadian Legal Lexpert® Directory (Investment Funds and Asset Management - Consistently Recommended) since 2012 and in the 2017 and 2018 editions (Derivative Instruments - Repeatedly Recommended).
  • Recipient of the Women's Executive Network (WXN) 2017 Canada's Most Powerful Women: Top 100 Award.
  • In every edition of The Best Lawyers in Canada® (Mutual Funds Law) since 2006.
  • Martindale-Hubbell® BV® Distinguished™ 4.4 out of 5 Peer Review Rated.
  • Recognized as a leader in her field by Derivatives Week — an online publication that reports on the global derivatives markets.