In what appears to be a pre-emptive strike, the Federal Government’s March 23, 2004 Budget includes a proposal to limit investment by Registered Pension Plans in certain income trusts. The Budget papers state that the larger pension funds have not to date been active investors in the business income trust market because of concerns about potential liability. The Government is concerned, however, that if the liability issue is clarified by provincial legislation (which may occur in the near future) these funds may consider becoming more active in this market and this would have a significant impact on Government revenues.

type Pension Alert - New Restrictions on Pension Fund Investment in Business Income Trusts