Canada: Share ownership rules for pension funds in Ontario

Pension funds' share-ownership rules in Ontario

The Ontario government announced that it intends to eliminate a rule that restricts Ontario pension funds from owning more than 30% of the voting shares in a corporation.

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Currently, real estate, resource, and investment corporations are exempted from the “30% rule,” and the Ontario government had been looking at providing further exemptions for investments in public infrastructure. 

On a related note, the 2015 Canadian federal budget announced a public consultation on whether the federal government too would amend the rule restricting federal pension funds from holding more than 30% of the voting shares of a company. Finance has not yet launched this consultation.

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