| 19(1) | File No. 5-8978 |
| W.C. Harding | |
| (613) 957-3499 |
November 14, 1989
Dear Sirs:
Re: Qualified Investments - Registered Retirement Savings Plans
This is in reply to your letter dated October 23, 1989 in which you request confirmation of your opinion that a guaranteed investment certificate stated in a foreign currency and issued by a trust company incorporated under the laws of Canada or of a province is a qualified investment for the purposes of a registered retirement savings plan (RRSP).
In our view, a guaranteed investment certificate stated in a foreign currency and issued by a trust company incorporated under the laws of Canada or of a province is a qualified investment for the purpose of an RRSP by virtue of subparagraphs 146(1)(g)(i) and 204(e)(vii) of the Income Tax Act. Furthermore, provided the issuer remains a resident of Canada, such a certificate will not be a foreign property within the meaning of subsection 206(1) of the Act.
We trust the foregoing comments will be useful to you.
Yours truly,
for DirectorFinancial Industries DivisionRulings Directorate