Finance provides comfort that additional persons becoming affiliated with an “actual” majority interest beneficiary will not trigger a loss restriction event

In a comfort letter released today, Finance is recommending an amendment that would add to the current definition of a majority-interest beneficiary, in the loss restriction event rules, an additional stipulation that in order for a person to be a majority-interest beneficiary it must also be a beneficiary, as broadly defined in s. 248(25), i.e. someone becoming a majority-interest beneficiary will not trigger a loss restriction event if that person does not also have an interest in the trust (albeit, as so broadly defined).  See 2014-0534841C6 F.

Among other recommendations, the new safe harbour in s. 251.2(3)(f) for what otherwise would be a loss restriction event for an investment fund would also be available on a unit redemption.

Neal Armstrong. Summary of 23 December 2014 Finance Comfort Letter.