13 June 1991 External T.I. 9112685 F - Deferred Income Plans: Foreign Currency

By services, 18 January, 2022
Official title
Deferred Income Plans: Foreign Currency
Language
French
CRA tags
n/a
Document number
Citation name
9112685
Severed letter type
Technical Interpretation - External
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
631836
Extra import data
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"field_release_date_new": "1991-06-13 08:00:00",
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Main text

5-911268

Dear Sirs

Re:  Deferred Income Plans:  Foreign Currency

This is in reply to your letter of April 30, 1991 concerning the Department's position on non-qualified investments for registered retirement savings plans (RRSPs) in relation to foreign currency.

Although various securities denominated in a foreign currency may be qualified investments for trusts governed by RRSPs, foreign currency itself is not a qualified investment.  Since dividends and interest on each securities are often paid in foreign currency and the purchase and sale of these securities are also transacted in foreign currency, the RRSP trust may at times receive or be required to temporarily 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, 1 month), it would not be considered to be a non-qualified investment acquired by the RRSP

We trust this is satisfactory.

Yours truly,

for DirectorFinancial Industries DivisionRulings Directorate

cc: Don Wyee Lyne Aubin-Morisset