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 Structured Products Group, a sub-group of the Investment Management Group.

Carol practises in the area of securities law, specializing in investment management funds. She works extensively for managers of mutual funds, exchange-traded funds, closed-end investment funds and pooled funds, particularly in the area of new product development. Carol also has an extensive derivatives practice, primarily for investment funds 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.

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 direct and syndicated private placement of units of the bitcoin fund to investors in Canada and abroad.
  • 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

  • Selected by peers for inclusion in the 2018 edition of The Best Lawyers in Canada® (Mutual Funds Law).
  • In every edition of The Best Lawyers in Canada® (Mutual Funds Law) since 2006.
  • In every edition of The Canadian Legal Lexpert® Directory (Investment Funds and Asset Management) since 2012 and in the 2017 edition (Derivative Instruments).
  • 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.