Archived - The Government of Canada Announces Qualification of Brazilian and Korean Designated Exchanges
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Addition of Brazilian and Korean exchanges provides more investment choice for Canadians
November 18, 2014 – Ottawa, Ontario – Department of Finance
Finance Minister Joe Oliver announced today that Brazil and Korea’s stock exchanges have qualified as designated stock exchanges in Canada.
Canadian investors are increasingly looking to foreign securities listed on foreign stock exchanges for return enhancement and portfolio diversification, as part of their savings objectives. The addition, effective October 31, 2014, of Brazil’s BM&F Bovespa Stock Exchange and Korea’s Korea Exchange (KOSPI and KOSDAQ) provides Canadians with more investment options for their Registered Retirement Savings Plans (RRSPs) and Tax-Free Savings Accounts (TFSAs).
A complete list of designated stock exchanges is available on the Department of Finance’s website.
- The current process is a three-tiered system that includes designated stock exchanges, recognized stock exchanges and stock exchanges. Designation status is particularly important for RRSP investors, as securities listed on designated exchanges are eligible to be held in RRSPs. They are also eligible investments for TFSAs and other registered plans.
- The Minister of Finance’s role is to ensure that these eligible investments, given their preferential tax treatment, trade on well-governed, regulated and transparent markets. Designated stock exchanges must therefore be explicitly designated, by public notice, by the Minister of Finance.
- There are currently 44 designated stock exchanges.
- In Budget 2007, the Government committed to formalizing the process that exchanges were required to follow in applying for designation status and the principles-based criteria the Government uses in evaluating these requests.
- The streamlined designation process was implemented in 2008. It expedited the review of applications from exchanges and provided more transparency around the factors used to evaluate such applications.
“I am pleased to announce the addition of Brazilian and Korean stock exchanges to the list of designated stock exchanges in Canada. Canadians should have access to a broad range of investment options that best suit their needs, particularly when it comes to important savings vehicles like RRSPs and TFSAs. Canadians can be confident that these securities, to which they now have access, are traded on well-governed, regulated and transparent markets.”
- Joe Oliver, Minister of Finance
- Designated Stock Exchanges
- Press Release on Rules for Designated Stock Exchanges (2008)
- Backgrounder on Process for Designating Stock Exchanges
Office of the Minister of Finance
Department of Finance