Ottawa to remove 30% investment cap for Canadian pension funds

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Finance Minister Chrystia Freeland says the upcoming fall economic statement on Monday will remove the cap that currently restricts Canadian pension funds from owning more than 30 per cent of the voting shares of a Canadian entity.

Freeland says this will make it easier for Canadian pension funds, which have more than $3 trillion in assets, to make significant investments in Canadian entities. The federal government plans to consult with the provinces on the treatment of provincially-regulated pension plans during the development of regulatory amendments.

Ottawa is also introducing measures such as launching a fourth round of the Venture Capital Catalyst Initiative with $1 billion in funding available in 2025-26, providing up to an aggregate of $1 billion to invest in mid-cap growth companies, and unlocking up to $45 billion in aggregate loan and equity investments for certain AI data centre projects.

The announcement also includes potentially lowering the threshold that limits municipal-owned utility corporations from attracting more than 10 per cent private sector ownership, which Ottawa says would help Canadian pension funds acquire a higher ownership share. The government will also consult airports and pension funds on potential ways to further incentivize investment on airport lands, such as by making changes to airport authority ground leases.

The deputy prime minister says Canada is"in a global fight for capital," especially as the incoming Trump administration seeks to create"economic uncertainty outside the United States as a strategy to discourage investment anywhere other than the United States."

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Ottawa to remove 30% investment cap for Canadian pension fundsFinance Minister Chrystia Freeland says the upcoming fall economic statement on Monday will remove the cap that currently restricts Canadian pension funds from owning more than 30 per cent of the voting shares of a Canadian entity.
Source: CTVNews - 🏆 1. / 99 Read more »

Ottawa to remove investment cap for Canadian pension fundsFinance Minister Chrystia Freeland says the upcoming fall economic statement on Monday will remove the cap that currently restricts Canadian pension funds from owning more than 30 per cent of the voting shares of a Canadian entity.
Source: CTVNews - 🏆 1. / 99 Read more »