Principal Issues: A segregated fund proposes to acquire units of an investment trust. Will this cause the investment trust to be considered a financial institution under paragraph (b) of the definition of "financial institution" in subsection 142.2(1) of the Act?
Position: Based on the facts provided, the acquisition by the segregated fund will not, in itself, cause the investment trust to be considered a financial institution.
Reasons: In order to determine whether the investment trust falls within the scope of paragraph (b) of the financial institution definition, we need to consider whether the segregated fund is itself a financial institution. The facts provided indicate that the segregated fund is not a financial institution.