The OSC recently granted relief, pursuant to
certain conditions, to a number of applicants exempting their funds
and current and future mutual funds managed by the applicants that
enter into swaps in the future:
(i) from the requirement in subsection
2.7(1) of NI 81-102 that a mutual fund must not purchase an option
or a debt-like security or enter into a swap or a forward contract
unless, at the time of the transaction, the option, debt-like
security, swap or contract has an approved credit rating or the
equivalent debt of the counterparty, or of a person or company that
has fully and unconditionally guaranteed the obligations of the
counterparty in respect of the option, debt-like security, swap or
contract, has an approved credit rating (the Counterparty
Credit Rating Requirement);
(ii) from the limitation in subsection
2.7(4) of NI 81-102 that the mark-to-market value of the exposure
of a mutual fund under its specified derivatives positions with any
one counterparty other than an acceptable clearing corporation or a
clearing corporation that settles transactions made on a futures
exchange listed in Appendix A to NI 81-102 shall not exceed, for a
period of 30 days or more, 10 percent of the net asset value of the
mutual fund (the Counterparty Mark-to-Market Exposure
(iii) from the requirement in
subsection 6.1(1) of NI 81-102 to hold all portfolio assets of a
mutual fund under the custodianship of one custodian in order to
permit each FIC Fund to deposit cash and portfolio assets directly
with a Futures Commission Merchant (as defined below) and
indirectly with a Clearing Corporation (as defined below) as
in each case, with respect to cleared
The exemptive relief allows the applicants to enter into cleared
swaps in accordance with the clearing requirements under
Dodd-Frank/CFTC without having to comply with the above
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Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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