• Cash-Settled Derivative Transactions not Subject to Proposed FIE Rules
  • February 24, 2004 | Authors: Mark Lobsinger; Ryan L. Morris
  • Law Firm: McMillan Binch Mendelsohn LLP - Toronto Office
  • Those following the progress of the proposed "foreign investment entity" ("FIE") rules will be interested in the CCRA's latest published administrative position concerning the application of those rules to cash settled derivatives. In CCRA Document No. 2003-0023435, the CCRA expresses the view that a cash-settled derivative contract is not subject to the FIE rules, effectively reversing its position expressed six months earlier. The reversal is due to a change in the rules incorporated in the Department of Finance release of October 30, 2003.