Pension Benefits Standards Regulations, 1985

7.1 (1) The administrator of a plan shall, before the day on which the plan is registered, establish a written statement of investment policies and procedures that pertain to the plan’s portfolio of investments and loans, other than those relating to any member choice account, including policies and procedures pertaining to

• (a) categories of investments and loans, including derivatives, options and futures,

• (b) diversification of the investment portfolio,

• (c) asset mix and rate of return expectations,

• (d) liquidity of investments,

• (e) the lending of cash or securities,

• (f) the retention or delegation of voting rights acquired through plan investments,

• (g) the method of, and basis for, the valuation of investments that are not regularly traded at a marketplace; and

• (h) related party transactions permitted under section 17 of Schedule III and the criteria to be used to establish whether a transaction is nominal or immaterial to the plan,

having regard to all factors that may affect the funding and solvency of the plan and the ability of the plan to meet its financial obligations.

(2) The statement of investment policies and procedures referred to in subsection (1) shall include a description of the factors referred to in that subsection and the relationship of those factors to those policies and procedures.

(3) The administrator of a plan shall submit the statement of investment policies and procedures referred to in subsection (1)

• (a) to any pension council that has been established, within 60 days after the later of

  • (i) the day on which the statement is established, and

  • (ii) the day on which the pension council is established; and

• (b) where a plan is a defined benefit plan, to the actuary to the plan on or before the day that is the later of

  • (i) 60 days after the day on which the statement is established, and

  • (ii) the day on which the actuary is appointed.