March 2018
Prudent Investor Regulation Finalized

2018-03-12 2:24:17 PM

The government has finalized the regulations that will enable to municipalities to use the prudent investor standard for investments. The regulation will allow qualifying municipalities to abandon the "legal list" of of eligible investments and invest in any security that is appropriate for their situation. Eligible municipalities will be able to build investment portfolios that are more diverse and tailored to local needs. 

In order to quality municipalities must pass a by-law (beginning in March 2019) and satisfy a series of criteria. 

  • Municipalities will be able to qualify either independently or as part of a group. To qualify independently, the municipal government must have at least $100 million in money and investments that it does not require immediately, or at least $50 million in net financial assets.

  • Municipalities must pass a by-law to participate, and adopt an investment policy that includes investment objectives, timeframes, and risk tolerance levels.

  • A Council-appointed Investment Board will use the policy to develop and implement an investment plan. Other than the municipal treasurer, no other municipal staff or elected officials would sit on this board, which would be comprised of investment experts. Municipal governments will have the option of establishing this Board independently or jointly with other municipalities.

  • The regulation requires compliance monitoring systems, and regular reviews and financial reports.

You can review the full regulation here

For more: 

LAS/One Investment Program Backgrounder: New Investment Powers--Prudent Investor Standard and Legal List Amendments 


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