The Government of Ontario has proposed a regulatory amendment that would modify one of the quantitative investment limits that apply to registered provincial pension plans, which promotes diversification by restricting a plan administrator from investing more than 10% of a pension plan’s assets in a single entity, or two or more associated entities or affiliated companies.
The proposed amendment would remove this restriction for investments in securities issued and fully guaranteed by the U.S. government.
Comments on the proposal can be submitted to the Ministry of Finance by Feb. 18, 2014.
The government announced in the 2013 Economic Outlook and Fiscal Review that it would be modernizing the investment rules that apply to Ontario-registered pension plans, including regulatory amendments under the Pension Benefits Act to provide plan administrators with greater flexibility to pursue investment strategies that allow a better match with plan liabilities.