Canada Approves Use Of BSX Securities In Retirement Savings Plans
Thursday, November 17, 2011
The Bermuda Stock Exchange (BSX) has announced that the Minister of Finance for Canada has approved the addition of the exchange to the list of designated exchanges under Canada's Income Tax Act.
In 2005, the Canadian government removed the foreign content limit on tax-deferred
retirement plans prompting an increasing number of Canadian investors to look
to foreign securities listed on foreign exchanges to enhance their returns and
diversify the investments held in their Canadian Registered Retirement Savings
Plans (RRSPs) and Deferred Profit Sharing Plans (DPSPs).
Securities listed on a designated exchange are eligible to be held in these
assets, meaning that official recognition of the BSX will open up the opportunity
for Canadian investors to include BSX listed securities in these investment
While the Designation status is not an endorsement or recommendation of individual
securities listed and traded on the BSX, it is an acknowledgement by the Canadian
government that these securities trade on a well-governed, regulated and transparent
market which allow them to be qualified investments for tax-deferred retirement
plans in Canada.
Announcing the news, Greg Wojciechowski, BSX President and Chief Executive
Officer said: "The BSX is delighted to have achieved and been granted this
very important designation by Canada’s Minister of Finance. Following
the implementation of a Tax Information Exchange Agreement between Bermuda and
Canada this summer, designation of the BSX by the Minister is very welcome news.
I am confident that these important developments will deepen the longstanding
cultural, commercial and capital market ties between our countries. We are grateful
to Canada’s Department of Finance for the guidance that has been provided
to us during the designation process.”