IFIC Wants Changes to Bill C-377By Andrew Rickard | January 23 2015 08:39AM
The Investment Funds Institute of Canada (IFIC) is calling for amendments to the federal government’s Bill C-377 – An Act to amend the Income Tax Act (Requirements for Labour Organizations).
The bill is intended to require labour organisations to publicly disclose their financial information, but IFIC argues that since the legislation defines a labour trust as "a trust or fund … maintained in whole or in part for the benefit of a labour organization, its members or the persons it represents," it will end up applying to investment funds that have been structured as trusts if even one security holder or beneficiary is a member of a labour organization.
“Bill C-377’s current language will have significant and costly unintended consequences for Canada’s investment funds industry, to the detriment of the millions of Canadians who own mutual funds,” comments IFIC CEO and president Joanne De Laurentiis.
IFIC and other industry groups such as the Canadian Life and Health Insurance Association have suggested that the wording be changed to define a labour trust as being "wholly maintained in whole or in part for the benefit of a labour organization, its members or the persons it represents”.
“We urge the Senate Standing Committee on Legal and Constitutional Affairs to recognize the potential harm inherent in these few words and to adopt our amendment when the bill is reported back to the House of Commons,” says De Laurentiis.