Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
XXXX W.C. Harding (613)957-3499
April 28, 1988
Dear Sir:
This is in reply to your letter of March 15, 1988 wherein you requested if certain investments and activities would be qualified investments and activities for registered- retirement savings plans.
1. Call options listed on foreign stock exchanges are not qualified investments.
2. The writing of covered call options is not subject to the rules governing qualified investments as it does not involve the acquisition of property or a right by the RRSP. Instead cash is received as a means of possibly increasing the proceeds from the sale of shares.
3. Stock index call optiotts.listed on Canadian exchanges are not qualified investments since they do not give the RRSP a right to acquire any property that would be qualified as is required for an option to be qualified.
4. Stock index call options listed on foreign exchanges are not qualified investments for the reasons noted in 1 and 3 above.
We trust that these comments are satisfactory to you.
Yours truly,
for Director Financial Industries Division Rulings Directorate
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© Her Majesty the Queen in Right of Canada, 1988
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© Sa Majesté la Reine du Chef du Canada, 1988
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