6 June 1990 Internal T.I. 5900929 F - Is "NPW" a Qualified Investment for an RRSP Trust?

By services, 18 January, 2022
Official title
Is "NPW" a Qualified Investment for an RRSP Trust?
Language
French
CRA tags
4900(1)(e)
Document number
Citation name
5900929
Severed letter type
Technical Interpretation - Internal
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
632384
Extra import data
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"field_external_guid": [],
"field_proprietary_citation": [],
"field_release_date_new": "1990-06-06 08:00:00",
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Main text
24(1) File No. 5-900929
  D.S. Delorey
  (613) 957-3495

19(1)

June 6, 1990

Dear Sirs:

This is in reply to your letter of May 18, 1990 asking if "Nikkei Put Warrants" listed on the Toronto Stock Exchange are qualified investments for a registered retirement savings plan ("RRSP") trust.

In order for a warrant listed on the Toronto Stock Exchange to be a qualified investment for an RRSP trust at a particular time, it must at that time meet the other requirement of paragraph 4900(1)(e) of the Income Tax Regulations.  That is, the warrant will be a qualified investment for an RRSP trust at a particular time only if at that time it gives the trust the right to acquire a property that, if the warrant were exercised at the particular time, would be a qualified investment for the trust.  It is our understanding that a Nikkei Put Warranty does not give such a right at all times and thus does not represent a qualified investment for an RRSP trust.

We trust that our comments are of assistance.

Yours truly,

for DirectorFinancial Industries DivisionRulings Directorate