CRA requires that a mortgage investment corporation not be involved in management activities of a subsidiary.

One of the requirements for a corporation to qualify as a mortgage investment corporation (MIC) is that its only undertaking be the investing of its funds and that it not manage or develop real property.  CRA considers that this requirement will not be breached if the mooted MIC has a subsidiary which manages or develops real property, provided that the MIC is not involved in those activities of its subsidiary.

A similar issue which arise in the income fund world is often addressed in part by ensuring that there is no overlap between the trustees of the income fund and the directors of any subsidiary with an operating business.

Neal Armstrong.  Summary of 12 October 2012 T.I. 2012-0450291E5 under s. 130.1(6).