Where a provincial securities commission has a policy on what it considers to be redeemable on demand, will CRA generally accept such policy in determining whether the redeemable-on-demand requirement in s. 108(2)(a)(i) is satisfied? CRA responded:
[W]here a provincial securities commission has a policy concerning what it considers to be redeemable on demand for provincial securities purposes [CRA]…will generally accept such policy in determining whether a particular trust would satisfy the redeemable on demand requirement in subparagraph 108(2)(a)(i). … . In addition, where the relevant securities legislation accepted as redeemable at the demand of the holder a redemption schedule that provided for no less than two redemptions annually, such a fund could generally qualify as a unit trust under subparagraph 108(2)(a)(i).