The Fonds de solidarité FTQ announced Nov. 21 that it has reached its share issuance limit and will no longer accept lump-sum contributions to the capital development fund until the end of its fiscal year on May 31, 2020.
The fund will continue to accept subscriptions from shareholders enrolled in payroll deduction and pre-authorized withdrawals savings programs.
According to the fund’s prospectus, the fund may limit the issuance of shares for the current fiscal year to maintain the balance of its business model, among other objectives. “For investors subscribing for shares by lump-sum payments, it should be noted that the Fonds de solidarité FTQ will issue shares to such investors on a first come, first served basis,” says the fund’s prospectus. “Subscriptions through lump-sum payments may not be accepted in order to comply with the limit on the issuance of shares that the Fonds de solidarité FTQ may announce.” In addition, the fund has an annual limit of $12,500 that a shareholder can invest per calendar year.
In an earlier statement, the fund said it will, going forward, continue to “give priority to any existing subscription agreements involving payroll deduction, employer contributions or preauthorized withdrawals and will continue issuing shares throughout the year in accordance with these agreements.”