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.
| 24(1) |
0-920940 |
| |
D. Duff |
| |
(613) 957-8953 |
Attention: 19(1)
April 7, 1992
Dear Madam:
Re: Qualified Investments in a Registered Retirement Savings Plan
This is to inform you of the Department's position concerning the situation when a trust governed by a registered retirement savings plan ("RRSP") acquires foreign currency in connection with transactions dealing with securities that are denominated in the foreign currency.
Various securities denominated in foreign currency are qualified investments for a trust governed by a RRSP, however, the foreign currency itself is not a qualified investment. Since dividends and interest on such securities are often paid in foreign currency and the purchase and sale of these securities are also transacted in foreign currency, the trust may receive or be required to hold foreign currency to participate in these transactions.
In such situations, provided that the foreign currency is converted to an otherwise qualified investment within a reasonable time, (for example, one month), the Department would not consider the trust to have acquired a non-qualified investment. We trust this letter satisfactorily explains our position on this matter. However, should you or any of your members require any further information, they may contact Mr. Wayne Harding, Financial Industries Division at (613) 957-8953.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate
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© Her Majesty the Queen in Right of Canada, 1992
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© Sa Majesté la Reine du Chef du Canada, 1992
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