Foreign content in segregated funds

Question: You mention in your web site that there are no restrictions on foreign content in segregated funds, is this still true? If yes, why do segregated fund companies hide this information?

Answer:

Segregated funds (those offered through insurance companies) are not subject to any foreign content limitations at the present time. This was due to change on Jan. 1, 2001 but Finance Minister Paul Martin announced a one-year extension in his budget of February 2000. So the foreign content rules won’t come into affect for segregated funds until Jan. 1, 2002, unless there is another extension. I presume that the insurance companies don’t make a big issue of this because of the fact the regulations will eventually apply to them, and they don’t want to mislead anyone.