Definition of Selected Listed Financial Institution

GST/HST memorandum 17-6-1
July 2026

This version replaces the one dated July 2014. This memorandum has been updated to include amendments to the definition of investment plan under subsection 149(5) and other related provisions of the Excise Tax Act, as well as amendments to several definitions in the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations.

This memorandum has also been updated to include the proposed amendments to the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations released on August 9, 2022, and August 12, 2024. At the time of publication, the proposed amendments were not law. The publication of this memorandum should not be taken as a statement by the Canada Revenue Agency that such amendments will, in fact, become law in their current form.

Except as otherwise noted, all statutory references in this publication are to the provisions of the Excise Tax Act (ETA). The information in this publication does not replace the law found in the ETA and its regulations. Although correct at the time of issue, this publication may not have been updated to reflect subsequent legislative changes.

If this information does not completely address your particular situation, you may wish to refer to the ETA or relevant regulation, or call GST/HST Rulings at 1‑800‑959‑8287 for additional information. If you require certainty with respect to any particular GST/HST matter, you may request a ruling. GST/HST Memorandum 1-4, Requesting a GST/HST Ruling or Interpretation, explains how to obtain a ruling or an interpretation.

If you are located in Quebec and wish to request a ruling related to the GST/HST, please call Revenu Québec at 1‑800‑567‑4692. You may also visit the Revenu Québec website at revenuquebec.ca to obtain general information.

For listed financial institutions that are selected listed financial institutions (SLFIs) for GST/HST or Quebec sales tax (QST) purposes or both, whether or not they are located in Quebec, the CRA administers the GST/HST and the QST. If you wish to make a technical GST/HST or QST enquiry related to SLFIs, please call 1‑855‑666‑5166.

GST/HST rates

Reference in this publication is made to supplies that are subject to the GST or the HST. The GST/HST rates are those that were in effect at the time of publishing. For the list of all applicable GST/HST rates (current and historic), go to GST/HST calculator (and rates).

If you are uncertain as to whether a supply is made in a participating province, refer to GST/HST Memorandum 3-3-2, Place of Supply in a Province – Overview.

Table of Contents

• Financial institutions
  • De minimis financial institutions
  • Listed financial institutions
• Selected listed financial institutions
• Prescribed financial institutions
  • Permanent establishment
  • Province of residence of a person
• Qualifying partnership
• Investment plans that are not selected listed financial institutions
  • Provincial investment plans
  • Stratified investment plans with provincial series
  • Qualifying small investment plans and qualifying private investment plans
• Tips for determining whether a particular investment plan is a selected listed financial institution
• Appendix A – Definitions
  • Definition of investment plan
  • Definitions of types of investment plans
    • Distributed investment plan
    • Non-stratified investment plan
    • Private investment plan
    • Qualifying private investment plan
    • Qualifying small investment plan
    • Stratified investment plan
  • Definitions of other terms used in this memorandum
    • Defined benefits pension plan
    • Defined contribution pension plan
    • Individual
    • Investment limited partnership
    • Loan corporation
    • Master pension entity
    • Participating province
    • Participating provinces member percentage
    • Pension entity
    • Pension plan
    • Plan member
    • Province
    • Qualifying master pension entity
    • Series
    • Total participating provinces unit value
    • Unit
    • Unrecoverable tax amount
• Appendix B – Tips for determining whether a particular investment plan is a selected listed financial institution
  • Distributed investment plans
    • Non-stratified investment plans
    • Stratified investment plans
  • Private investment plans and pension entities
  • Master pension entities

Financial institutions

1. Financial institution is defined in subsection 123(1) to mean a person that is a financial institution under section 149. Subsection 149(1) identifies two categories of financial institutions for GST/HST purposes: listed financial institutions (LFIs), which are persons described in paragraph 149(1)(a), and de minimis financial institutions, which are persons that are determined to be financial institutions based on the de minimis threshold tests set out in paragraphs 149(1)(b) and (c).

2. Determining whether a person is a financial institution is necessary because financial institutions are subject to particular treatment under various provisions of the ETA. Some provisions apply specifically to financial institutions, while others only apply to LFIs or selected listed financial institutions (SLFIs). For example, under paragraph 240(3)(c), an LFI resident in Canada that is not engaged in a commercial activity in Canada is permitted to register voluntarily for GST/HST purposes. For information on when an LFI is required to be registered for GST/HST purposes and when it may voluntarily register, refer to GST/HST Memorandum 17-6-2, GST/HST Registration and Reporting Requirements for Listed Financial Institutions, Including Selected Listed Financial Institutions.

3. In addition, other provisions specifically exclude financial institutions, LFIs, or SLFIs from the application of the particular provision. For example, section 185 (generally regarding determining an input tax credit on property and services acquired, imported, or brought into a participating province by a registrant for consumption, use, or supply in the course of making supplies of financial services that relate to the registrant's commercial activities) and section 198 (generally regarding the extent that capital property of a registrant is used by the registrant in making supplies of financial services that relate to the registrant's commercial activities) do not apply to LFIs.

De minimis financial institutions

4. There are two de minimis threshold tests found under paragraphs 149(1)(b) and (c). A person may be a financial institution for GST/HST purposes under either of these two paragraphs. For more information on de minimis financial institutions, refer to GST/HST Memorandum 17-7, De Minimis Financial Institutions. It is important to note that a person that is a financial institution only because it is a de minimis financial institution cannot be an SLFI.

Listed financial institutions

5. Listed financial institution is defined in subsection 123(1) to mean "a person referred to in paragraph 149(1)(a)". Specifically, a person is an LFI throughout a particular taxation year if, at any time in the particular year, the person is described in one of the categories in subparagraphs 149(1)(a)(i) to (xi). Refer to GST/HST Memorandum 17-6, Definition of Listed Financial Institution, for more information about LFIs.

6. A person that is an LFI described in any of subparagraphs 149(1)(a)(i) to (x) may also be an SLFI.

7. A corporation that is an LFI described in subparagraph 149(1)(a)(xi) because it is a member of a closely related group and has a subsection 150(1) election in effect cannot be an SLFI, unless the corporation is also an LFI described in any of subparagraphs 149(1)(a)(i) to (x). Refer to GST/HST Memorandum 17-14, Election to Deem Supplies to be Financial Services and Related Election for Selected Listed Financial Institutions, for more information on the subsection 150(1) election.

Selected listed financial institutions

8. Selected listed financial institution is defined in subsection 123(1) to mean, "at any time, a listed financial institution who is at that time a selected listed financial institution under subsection 225.2(1)".

9. Determining whether an LFI is an SLFI is necessary because SLFIs are subject to particular treatment under various provisions of the ETA. For example, an SLFI must generally use the special attribution method (SAM) formula under subsection 225.2(2) or the adapted SAM formula under section 48 of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations (SLFI Regulations) to calculate its liability for the provincial part of the HST for each participating province.

10. Under subsection 225.2(1), a financial institution is an SLFI throughout a reporting period in a fiscal year that ends in its taxation year if the financial institution is both:

• (a) an LFI described in any of subparagraphs 149(1)(a)(i) to (x) at any time in the taxation year
• (b) a prescribed financial institution throughout the reporting period

11. Subparagraphs 149(1)(a)(i) to (x) include the following categories of LFIs:

• (i) a bank
• (ii) a corporation that is licensed or otherwise authorized under the laws of Canada or a province to carry on in Canada the business of offering to the public its services as a trustee
• (iii) a person whose principal business is as a trader or dealer in, or as a broker or salesperson of, financial instruments or money
• (iv) a credit union
• (v) an insurer or any other person whose principal business is providing insurance under insurance policies
• (vi) a segregated fund of an insurer (refer to the definition of investment plan in Appendix A for more information)
• (vii) the Canada Deposit Insurance Corporation
• (viii) a person whose principal business is the lending of money or the purchasing of debt securities or a combination of these activities
• (ix) an investment plan (refer to the definition of investment plan in Appendix A for more information)
• (x) a person providing services referred to in section 158 (tax discounter)

Prescribed financial institutions

12. Under section 9 of the SLFI Regulations, an LFI is a prescribed financial institution throughout a reporting period in a particular fiscal year that ends in its taxation year if the LFI meets one of the following conditions:

• (a) it has, at any time in the taxation year, a permanent establishment in a participating province and has, at any time in the taxation year, a permanent establishment in any other province (refer to the Permanent establishment section in this memorandum for more information)
• (b) it is a qualifying partnership during the taxation year (refer to paragraph 22 of this memorandum for more information)

13. Under sections 10 to 13 of the SLFI Regulations, certain investment plans are excluded from being a prescribed financial institution under section 9 of the SLFI Regulations and, therefore, would not be an SLFI when certain conditions are met (refer to paragraphs 23 to 32 of this memorandum for more information). It is proposed that section 13 would be repealed so that it would not apply to any fiscal years of a person that end after August 9, 2022.

14. For purposes of the SLFI Regulations, the term investment plan includes a segregated fund of an insurer (refer to the definition of investment plan in Appendix A for more information).

Permanent establishment

15. For purposes of the SLFI Regulations, including determining whether an LFI is a prescribed financial institution, the term permanent establishment is defined in subsection 1(1) of the SLFI Regulations to mean any permanent establishment that the person is deemed to have under section 3 of the SLFI Regulations and:

• (a) for a corporation that is not an investment plan, any permanent establishment of the corporation as determined under subsection 400(2) of the Income Tax Regulations
• (b) for an individual or a trust that is not an investment plan, any permanent establishment of the individual or trust as determined under subsection 2600(2) of the Income Tax Regulations
• (c) for a partnership that is not an investment plan:
  • (i) if all the members of the partnership are individuals or trusts, any permanent establishment that would be a permanent establishment of the partnership under subsection 2600(2) of the Income Tax Regulations if the partnership were an individual
  • (ii) if subparagraph (i) above does not apply, any permanent establishment that would be a permanent establishment of the partnership under subsection 400(2) of the Income Tax Regulations if the partnership were a corporation

16. Under proposed section 3 of the SLFI Regulations, certain LFIs are also deemed to have a permanent establishment in a province as indicated below:

• (a) if a financial institution is a bank or a credit union and if, at any time in a taxation year of the financial institution, the financial institution maintains a deposit or other similar account that is in the name of a person resident in a province or, at any time in that year, a loan that was made by the financial institution is outstanding and is either secured by real property situated in a province or, if not secured by real property, is owing by a person resident in a province, the following rules apply:
  • (i) the financial institution is deemed to have a permanent establishment in the province throughout the taxation year
  • (ii) the following loans made by the financial institution and deposit and other similar accounts maintained by the financial institution are deemed to be loans and deposits of the permanent establishment referred to in subparagraph (i) above and not of any other permanent establishment of the financial institution:
    • (A) outstanding loans secured by real property situated in the province
    • (B) outstanding loans, not secured by real property, owing by persons resident in the province
    • (C) deposit and other similar accounts in the name of a person resident in the province
• (b) if a financial institution (other than a bank, credit union, or investment plan) is an insurer that, at any time in a taxation year of the financial institution, is insuring a risk in respect of property ordinarily situated in a province or in respect of a person resident in a province, the financial institution is deemed to have a permanent establishment in the province throughout the taxation year
• (c) if a financial institution (other than a bank, credit union, insurer, or investment plan) is a trust and loan corporation, a trust corporation, or a loan corporation and if, at any time in the taxation year of the financial institution, the financial institution conducts business (other than business in respect of loans) in a province or, at any time in that year, a loan that was made by the financial institution is outstanding and is either secured by real property situated in a province or, if not secured by real property, is owing by a person resident in a province, the financial institution is deemed to have a permanent establishment in the province throughout the taxation year
• (d) if a financial institution is a segregated fund of an insurer, the financial institution is deemed to have a permanent establishment in a province throughout a taxation year of the financial institution if, at any time in the taxation year, either of the following applies:
  • (i) the insurer is qualified, under the laws of Canada or a province, to sell units of the financial institution in the particular province
  • (ii) a person resident in the particular province holds one or more units of the financial institution
• (e) if a financial institution is a distributed investment plan (other than a master pension entity or a segregated fund of an insurer), the financial institution is deemed to have a permanent establishment in a particular province throughout a taxation year of the financial institution if, at any time in the taxation year, either of the following applies:
  • (i) the financial institution is qualified, under the laws of Canada or a province, to sell or distribute units of the financial institution in the particular province
  • (ii) a person resident in the particular province holds one or more units of the financial institution
• (f) if a financial institution is a private investment plan or an investment plan that is a pension entity of a pension plan and, at any time in a taxation year of the financial institution, a plan member of the financial institution is resident in a province, the financial institution is deemed to have a permanent establishment in the province throughout the taxation year
• (g) if a financial institution is a master pension entity, the financial institution is deemed to have a permanent establishment in a province throughout a taxation year of the financial institution if, at any time in the taxation year, either of the following applies:
  • (i) a pension entity, master pension entity, or private investment plan holds one or more units of the financial institution and has a permanent establishment in the province
  • (ii) a person (other than a pension entity, master pension entity, or private investment plan) holds one or more units of the financial institution and is resident in the province

17. It is important to note that investment plans, such as distributed investment plans, private investment plans, and investment plans that are pension entities, do not have a permanent establishment in a province only because they do business in the province, or a trustee is resident in the province. This is due to the exclusions for investment plans listed in paragraphs (a) to (c) in paragraph 15 of this memorandum. For example, even if a pension entity has a fixed place of business in a province (such as owning an office building in the province), the pension entity does not have a permanent establishment in the province unless a plan member of the pension entity resides in the province.

18. Under section 4 of the SLFI Regulations, if the LFI has a permanent establishment in a province at any time in a taxation year, it is considered to have a permanent establishment in the province throughout the taxation year of the financial institution for purposes of the SLFI Regulations.

19. An LFI that does not have a permanent establishment in a participating province and a permanent establishment in any other province at any time in a taxation year cannot be an SLFI, unless it is a qualifying partnership. For example, a trust governed by a registered retirement savings plan (RRSP), a registered retirement income fund (RRIF), or a registered education savings plan (RESP) administered on an individual basis is generally not an SLFI because it would not have a permanent establishment in more than one province.

Province of residence of a person

20. For purposes of the SLFI Regulations, including determining whether an LFI has a permanent establishment in a particular province and is a prescribed financial institution, it may be necessary to determine whether a particular person, such as a unit holder or a plan member of an investment plan, is resident in a particular province.

21. For purposes of the SLFI Regulations, section 5 of the SLFI Regulations provides that a person resident in Canada is resident in the province:

• (a) if the person is an individual, where the person's principal mailing address in Canada is located
• (b) if the person is a corporation or a partnership, where the person's principal business in Canada is located
• (c) if the person is a trust governed by an RRSP, an RRIF, an RESP, a registered disability savings plan (RDSP), or a tax-free savings account (TFSA), where the principal mailing address in Canada of the annuitant of the RRSP or the RRIF, of the subscriber of the RESP, or of the holder of the RDSP or the TFSA is located
• (d) if the person is a trust (other than a trust described in paragraph (c) above), where the trustee's principal business in Canada is located or, if the trustee is not carrying on a business, where the trustee's principal mailing address in Canada is located
• (e) in any other case, where the person's principal business in Canada is located or, if the person is not carrying on a business, where the person's principal mailing address in Canada is located

Qualifying partnership

22. As discussed in paragraph 12 of this memorandum, a qualifying partnership is a prescribed financial institution. For purposes of the SLFI Regulations, section 2 of the SLFI Regulations provides that a partnership is a qualifying partnership during a taxation year of the partnership if the partnership is not an investment limited partnership and if, at any time in the taxation year, the partnership has both:

• (a) a member that has, at any time in the taxation year of the member in which the taxation year of the partnership ends, a permanent establishment in a particular participating province through which a business of the partnership is carried on or that is deemed under section 3 of the SLFI Regulations to be a permanent establishment of the member (refer to paragraph 16 of this memorandum for more information)
• (b) a member (including a member referred to in paragraph (a) above) that has, at any time in the taxation year of the member in which the taxation year of the partnership ends, a permanent establishment in a province other than the particular participating province (referred to in paragraph (a) above) through which a business of the partnership is carried on or that is deemed under section 3 of the SLFI Regulations to be a permanent establishment of the member (refer to paragraph 16 of this memorandum for more information)

Investment plans that are not selected listed financial institutions

23. Certain investment plans (which, for purposes of the SLFI Regulations, includes segregated funds of an insurer) are not SLFIs because they are excluded from being prescribed financial institutions for purposes of paragraph 225.2(1)(b). These exclusions apply where certain conditions are met, and the investment plan is any of the following:

• a provincial investment plan
• a stratified investment plan with provincial series
• a qualifying small investment plan (QSIP)
• a qualifying private investment plan (based on proposed amendments to the SLFI Regulations)

24. Each category of investment plan listed above is discussed in more detail in the following paragraphs.

Provincial investment plans

25. Under section 11 of the SLFI Regulations, a non-stratified investment plan is a provincial investment plan in respect of a reporting period in a fiscal year that ends in its taxation year where the plan meets all of the following conditions throughout the particular fiscal year in respect of a particular province:

• (a) under the laws of Canada or a province, units of the non-stratified investment plan are permitted to be sold or distributed in the particular province but are not permitted to be sold or distributed in any other province
• (b) under the terms of the prospectus, registration statement, partnership agreement, or other similar document for the non-stratified investment plan, or under the laws of Canada or a province, the conditions for a person owning or acquiring units of the plan include both of the following:
  • (i) that the person be resident in the particular province when the units are acquired
  • (ii) that the units are required to be sold, transferred, or redeemed within a reasonable time after the person ceases to be resident in the particular province
• (c) the non-stratified investment plan's provincial attribution percentage (calculated using the applicable formula in Part 2 of the SLFI Regulations) for the particular province and for the taxation year in which the preceding fiscal year ends, or the percentage that would be the non-stratified investment plan's provincial attribution percentage for the particular province and for that taxation year if the particular province were a participating province, is 90% or more

26. A non-stratified investment plan that is a provincial investment plan in respect of a reporting period in a fiscal year that ends in its taxation year is not a prescribed financial institution and, therefore, is not an SLFI throughout the reporting period. For the definition of non-stratified investment plan, refer to Appendix A. For more information on calculating an investment plan's provincial attribution percentage for a particular province, refer to GST/HST Technical Information Bulletin B–107, Investment Plans (Including Segregated Funds of an Insurer) and the HST.

Stratified investment plans with provincial series

27. Under section 12 of the SLFI Regulations, a stratified investment plan is not a prescribed financial institution in respect of a reporting period in a fiscal year if each series of the stratified investment plan is a provincial series for the fiscal year. This provision is similar to section 11 of the SLFI Regulations that applies to non-stratified investment plans that are provincial investment plans, which is discussed under the Provincial investment plans section in this memorandum.

28. Provincial series for a fiscal year of a stratified investment plan is defined in subsection 1(1) of the SLFI Regulations to mean a series of the stratified investment plan that meets all of the following conditions throughout the fiscal year in respect of a particular province:

• (a) under the laws of Canada or a province, units of the series are permitted to be sold or distributed only in the particular province and are not permitted to be sold or distributed in any other province
• (b) under the terms of the prospectus, registration statement, partnership agreement, or other similar document for the series, or under the laws of Canada or a province, the conditions for a person owning or acquiring units of the series include both of the following:
  • (i) that the person be resident in the particular province when the units are acquired
  • (ii) that the units are required to be sold, transferred, or redeemed within a reasonable time after the person ceases to be resident in the particular province
• (c) the stratified investment plan's provincial attribution percentage for the series (calculated using the applicable formula in Part 2 of the SLFI Regulations) for the particular province and for the taxation year in which the preceding fiscal year ends, or the percentage that would be the stratified investment plan's provincial attribution percentage for the series, for the particular province and for that taxation year if the particular province were a participating province, is 90% or more

29. A stratified investment plan that only has provincial series for a fiscal year is not a prescribed financial institution and, therefore, is not an SLFI in respect of a reporting period in the fiscal year. For the definition of stratified investment plan, refer to Appendix A. For more information on calculating an investment plan's provincial attribution percentage for a particular province, refer to GST/HST Technical Information Bulletin B-107.

Qualifying small investment plans and qualifying private investment plans

30. Under proposed section 10 of the SLFI Regulations, a QSIP or a qualifying private investment plan would not be a prescribed financial institution in respect of a reporting period in a particular fiscal year if any of the following apply:

• (a) the investment plan was a QSIP or qualifying private investment plan for its fiscal year that precedes the particular fiscal year and was not an SLFI throughout that preceding fiscal year
• (b) the investment plan was an SLFI throughout its three fiscal years that precede the particular fiscal year
• (c) the particular fiscal year is the first fiscal year of the investment plan

31. The proposed amendments to have section 10 of the SLFI Regulations apply to qualifying private investment plans would apply in respect of any fiscal year of a person that ends after August 9, 2022.

32. For the definition of QSIP and the proposed definition of qualifying private investment plan, refer to Appendix A.

33. Section 15 of the SLFI Regulations provides a means for certain investment plans that would otherwise be a prescribed financial institution, and therefore an SLFI, for a fiscal year of the investment plan to avoid being an SLFI for the fiscal year. Under proposed section 15, the investment plan can apply to the Minister to not be considered a prescribed financial institution, and therefore not an SLFI, for the particular fiscal year of the investment plan and the immediately following fiscal year if it is reasonable to expect the investment plan will be a QSIP or a qualifying private investment plan for those two fiscal years. The proposed amendments to have section 15 of the SLFI Regulations apply to qualifying private investment plans would apply in respect of any fiscal year of a person that ends after August 9, 2022.

34. The investment plan would apply to the Minister by filing Form RC4612, GST/HST Application to Not Be Considered a Selected Listed Financial Institution, or Form RC7212, Application to Not Be Considered a Selected Listed Financial Institution for GST/HST and QST Purposes or only for QST Purposes. For more information on that application, refer to Form RC4612 or Form RC7212, whichever is appropriate for the particular investment plan. The Minister has the discretion to approve or deny the application.

35. Section 14 of the SLFI Regulations provides an election that permits certain investment plans that would otherwise not be a prescribed financial institution, and therefore not an SLFI, to instead be treated as an SLFI. Under proposed section 14 of the SLFI Regulations, if an investment plan is, or reasonably expects to be, a QSIP or a qualifying private investment plan for a fiscal year, the investment plan may make an election to be a prescribed financial institution for the purpose of paragraph 225.2(1)(b) and, therefore, be treated as an SLFI, unless the exception discussed in paragraph 37 of this memorandum applies. The proposed amendments to have section 14 of the SLFI Regulations apply to qualifying private investment plans would apply in respect of any fiscal year of a person that ends after August 9, 2022.

36. The election is effective from the first day of the fiscal year. For more information on the election, refer to Form RC4606, GST/HST Election or Revocation to be Treated as a Selected Listed Financial Institution, or Form RC7206, Election or Revocation to be Treated as a Selected Listed Financial Institution for GST/HST and QST Purposes or only for QST Purposes.

37. The election described in paragraph 35 of this memorandum cannot be made if the investment plan has made an application under proposed section 15 of the SLFI Regulations in respect of the fiscal year, which has been approved by the Minister, to not be considered an SLFI (refer to paragraphs 33 and 34 of this memorandum for more information).

Tips for determining whether a particular investment plan is a selected listed financial institution

38. A series of tips were developed to help in determining whether a particular investment plan is an SLFI. The tips are found in Appendix B and are intended to provide general guidance only. More detailed information is provided in other sections of this memorandum. Before referring to these tips, it is important to first determine whether the particular investment plan is a distributed investment plan that is a stratified or non-stratified investment plan or whether the particular investment plan is a private investment plan, a pension entity, or a master pension entity (refer to Appendix A for more information).

Appendix A – Definitions

Definition of investment plan

A.1 For purposes of the SLFI Regulations, the term investment plan is defined in subsection 1(1) of the SLFI Regulations to mean a person referred to in subparagraph 149(1)(a)(vi) or (ix) (a segregated fund of an insurer or an investment plan) other than any of the following:

• (a) a trust governed by an RRSP, an RRIF, an RDSP, a TFSA, or a first home savings account (FHSA)^{Footnote 1}
• (b) a trust governed by an RESP if either of the following applies:
  • (i) the trust does not have more than one beneficiary at any one time
  • (ii) each of the beneficiaries of the trust is connected to each living subscriber under the plan, or was connected to a deceased original subscriber under the plan, by blood relationship or adoption within the meaning of subsection 251(6) of the Income Tax Act (ITA)

A.2 A segregated fund of an insurer is a person referred to in subparagraph 149(1)(a)(vi) and is defined in subsection 123(1) to mean "a specified group of properties that is held in respect of insurance policies all or part of the reserves for which vary in amount depending on the fair market value of the properties".

A.3 An investment plan is a person referred to in subparagraph 149(1)(a)(ix) and is defined in subsection 149(5) to mean:

• (a) a trust governed by any of the following (as each of the following terms is defined for the purposes of the ITA or Income Tax Regulations):
  • (i) a registered pension plan
  • (i.1) a pooled registered pension plan
  • (ii) an employees profit sharing plan
  • (iii) a registered supplementary unemployment benefit plan
  • (iv) an RRSP
  • (iv.1) a TFSA
  • (iv.2) an FHSA^{Footnote 2}
  • (v) a deferred profit sharing plan
  • (vi) an RESP
  • (vi.1) an RDSP
  • (vii) an RRIF
  • (viii) an employee benefit plan
  • (ix) an employee trust
  • (x) a mutual fund trust
  • (xi) Repealed^{Footnote 3}
  • (xii) a unit trust
  • (xiii) a retirement compensation arrangement
• (b) an investment corporation, as defined in the ITA
• (c) a mortgage investment corporation, as defined in the ITA
• (d) a mutual fund corporation, as defined in the ITA
• (e) a non-resident-owned investment corporation, as defined in the ITA
• (f) a corporation exempt from tax under the ITA by reason of paragraph 149(1)(o.1) or (o.2) of the ITA
• (f.1) an investment limited partnership, as defined in subsection 123(1)
• (g) a prescribed person or a person of a prescribed class

A.4 The Financial Services and Financial Institutions (GST/HST) Regulations provide that an employee life and health trust, as defined in subsection 248(1) of the ITA, is a prescribed person for purposes of paragraph 149(5)(g).

Definitions of types of investment plans

Distributed investment plan

A.5 Distributed investment plan is defined in subsection 1(1) of the SLFI Regulations to mean an investment plan that is any of the following:

• (a) a corporation (other than a pension entity) exempt from tax under the ITA by reason of paragraph 149(1)(o.2) of the ITA
• (b) an investment corporation
• (c) a mortgage investment corporation
• (d) a mutual fund corporation
• (e) a mutual fund trust
• (f) a non-resident-owned investment corporation
• (g) a segregated fund of an insurer
• (h) a unit trust that is not a trust described in any of subparagraphs 149(5)(a)(i) to (ix) and (xiii)
• (i) an investment limited partnership

Non-stratified investment plan

A.6 Non-stratified investment plan is defined in subsection 1(1) of the SLFI Regulations and means a distributed investment plan whose units are not issued in two or more series.

Private investment plan

A.7 Private investment plan is defined in subsection 1(1) of the SLFI Regulations and means an investment plan that is any of the following:

• a trust governed by any of the following:
  • an employees profit sharing plan
  • a registered supplementary unemployment benefit plan
  • a deferred profit sharing plan
  • an RESP (other than an individual or family RESP)
  • an employee benefit plan
  • an employee trust
  • a retirement compensation arrangement
• an employee life and health trust

Qualifying private investment plan

A.8 It is proposed that new subsection 7(3) would be added to the SLFI Regulations and would apply in respect of any fiscal year of an investment plan that ends after August 9, 2022. Under proposed subsection 7(3) of the SLFI Regulations, an investment plan would be a qualifying private investment plan for a particular fiscal year that ends in a particular taxation year of the investment plan if it is a private investment plan, a pension entity of a pension plan, or a master pension entity and if:

• (a) in the case of a private investment plan or a pension entity:
  • (i) if, in the absence of section 57 of the SLFI Regulations, the particular fiscal year is the first fiscal year of the investment plan, and both of the following conditions are met:
    • (A) throughout the particular taxation year, less than 10% of the total number of plan members of the investment plan are resident in the participating provinces
    • (B) throughout the particular fiscal year, the amount under subclause (I), (II), or (III), which follow, is less than $100 million:
      • (I) in the case of a pension entity of a pension plan, part of which is a defined contribution pension plan and the remaining part of which is a defined benefits pension plan, the amount determined by the formula:
      • A + B
      • where:
      • A is the total value of the assets of the defined contribution pension plan that are reasonably attributable to the plan members of the pension entity resident in the participating provinces
      • B is the total value of the actuarial liabilities of the defined benefits pension plan that are reasonably attributable to the plan members of the pension entity resident in the participating provinces
      • (II) in the case of a pension entity of a defined benefits pension plan, other than a pension entity described in subclause (I) above, the amount that is the total value of the actuarial liabilities of the pension plan that are reasonably attributable to the plan members of the pension entity resident in the participating provinces
      • (III) in any other case, the amount that is the total value of the assets of the private investment plan or pension plan that are reasonably attributable to the plan members of the investment plan resident in the participating provinces
  • (ii) in any other case, both of the following conditions are met:
    • (A) throughout the taxation year of the investment plan that precedes the particular taxation year, less than 10% of the total number of plan members of the investment plan are resident in the participating provinces
    • (B) throughout the fiscal year of the investment plan that precedes the particular fiscal year, the amount under subclause (I), (II), or (III), which follow, is less than $100 million:
      • (I) in the case of a pension entity of a pension plan, part of which is a defined contribution pension plan and the remaining part of which is a defined benefits pension plan, the amount determined by the formula:
      • C + D
      • where:
      • C is the total value of the assets of the defined contribution pension plan that are reasonably attributable to the plan members of the pension entity resident in the participating provinces
      • D is the total value of the actuarial liabilities of the defined benefits pension plan that are reasonably attributable to the plan members of the pension entity resident in the participating provinces
      • (II) in the case of a pension entity of a defined benefits pension plan, other than a pension entity described in subclause (I) above, the amount that is the total value of the actuarial liabilities of the pension plan that are reasonably attributable to the plan members of the pension entity resident in the participating provinces
      • (III) in any other case, the amount that is the total value of the assets of the private investment plan or pension plan that are reasonably attributable to the plan members of the investment plan resident in the participating provinces
• (b) in the case of a master pension entity:
  • (i) if, in the absence of section 57 of the SLFI Regulations, the particular fiscal year is the first fiscal year of the master pension entity, throughout the particular fiscal year, all of the following conditions are met:
    • (A) the master pension entity is a qualifying master pension entity
    • (B) the total participating provinces unit value of the qualifying master pension entity is less than $100 million
    • (C) the participating provinces member percentage of the qualifying master pension entity is less than 10%
  • (ii) in any other case, throughout the fiscal year of the master pension entity preceding the particular fiscal year, all of the following conditions are met:
    • (A) the master pension entity is a qualifying master pension entity
    • (B) the total participating provinces unit value of the qualifying master pension entity is less than $100 million
    • (C) the participating provinces member percentage of the qualifying master pension entity is less than 10%

For information on calculating the participating provinces member percentage or total participating provinces unit value for purposes of determining whether a qualifying master pension entity is a qualifying private investment plan, refer to the Definitions of other terms used in this memorandum section of this Appendix.

Qualifying small investment plan

A.9 Under proposed subsection 7(2) of the SLFI Regulations, a private investment plan or an investment plan that is a pension entity, that is not a qualifying private investment plan, is a QSIP for a particular fiscal year of the investment plan where the following conditions are met:

• (a) if, in the absence of section 57 of the SLFI Regulations, the particular fiscal year is the first fiscal year of the investment plan, the amount determined by the following formula for each reporting period of the investment plan included in the particular fiscal year is equal to or less than $10,000:
• • A × (365 ÷ B)
  • where:
  • A is the unrecoverable tax amount for the reporting period
  • B is the number of days in the reporting period
• (b) in any other case, the amount determined by the following formula is equal to or less than $10,000:
  
  • A × (365 ÷ B)
  • where:
  • A is the total of all amounts, each of which is an unrecoverable tax amount for a reporting period of the investment plan included in the fiscal year of the investment plan (referred to as the preceding fiscal year) that precedes the particular fiscal year
  • B is the number of days in the preceding fiscal year
  
  

A.10 The proposed amendment to subsection 7(2) of the SLFI Regulations to exclude qualifying private investment plans from being QSIPs would apply in respect of any fiscal year of the investment plan that ends after August 9, 2022.

A.11 For information on calculating the unrecoverable tax amount for purposes of determining whether an investment plan is a QSIP, refer to the Definitions of other terms used in this memorandum section of this Appendix.

Stratified investment plan

A.12 Stratified investment plan is defined in subsection 1(1) of the SLFI Regulations to mean "a distributed investment plan whose units are issued in two or more series".

Definitions of other terms used in this memorandum

Defined benefits pension plan

A.13 Defined benefits pension plan is defined in subsection 1(1) of the SLFI Regulations and means "the part of a pension plan that is in respect of benefits under the plan that are determined in accordance with a formula set forth in the plan and under which the employer contributions are not determined in accordance with a formula set forth in the plan".

Defined contribution pension plan

A.14 Defined contribution pension plan is defined in subsection 1(1) of the SLFI Regulations and means "the part of a pension plan that is not a defined benefits pension plan".

Individual

A.15 Individual is defined in subsection 123(1) to mean "a natural person" and, for purposes of the SLFI Regulations, the meaning of individual is expanded under subsection 1(1) of the SLFI Regulations to also include "the estate or succession of a deceased individual".

Investment limited partnership

A.16 Investment limited partnership is defined in subsection 123(1) to mean a limited partnership, the primary purpose of which is to invest funds in property consisting primarily of financial instruments, if either of the following applies:

• (a) the limited partnership is, or forms part of an arrangement or structure that is, represented or promoted as a hedge fund, investment limited partnership, mutual fund, private equity fund, venture capital fund, or other similar collective investment vehicle
• (b) the total value of all interests in the limited partnership held by LFIs is 50% or more of the total value of all interests in the limited partnership

Loan corporation

A.17 The term loan corporation is not defined in the SLFI Regulations or the ETA. The Canada Revenue Agency considers a corporation to be a loan corporation for GST/HST purposes if it is considered as such a corporation under the federal Trust and Loan Companies Act or an equivalent provincial statute. A corporation may also be considered a loan corporation if it is treated as such under other federal statutes. In addition, a corporation whose principal business is the lending of money or the making of loans is considered a loan corporation. Refer to GST/HST Memorandum 17-6 for guidance on determining a person's principal business.

Master pension entity

A.18 Master pension entity of a pension plan is defined in subsection 123(1) to mean a person that is not a pension entity of the plan and is either of the following:

• a corporation described in paragraph 149(1)(o.2) of the ITA, one or more shares of which are owned by a pension entity of the pension plan
• a trust prescribed to be a master trust for the purposes of paragraph 149(1)(o.4) of the ITA, one or more units of which are owned by a pension entity of the pension plan

Participating province

A.19 Participating province means a province that has harmonized its provincial sales tax with the GST to implement the HST. Participating provinces include New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, and Prince Edward Island, but do not include the Nova Scotia offshore area or the Newfoundland offshore area except to the extent that offshore activities, as defined in subsection 123(1), are carried on in that area.

Participating provinces member percentage

A.20 Proposed new paragraph 7(4)(b) of the SLFI Regulations provides how to calculate the participating provinces member percentage for purposes of determining whether a qualifying master pension entity is a qualifying private investment plan. The participating provinces member percentage of a particular qualifying master pension entity at any time would be equal to the amount, expressed as a percentage, determined by the following formula:

• A ÷ B
• where:
• A is equal to the total of all amounts, each of which is determined for a pension entity, a private investment plan, or another qualifying master pension entity that holds one or more units of the particular qualifying master pension entity by the formula:
• • C × D
  • where:
  • C is:
    • (i) in the case of a pension entity or private investment plan, the amount determined by the formula:
    • • E ÷ F
      • where:
      • E is the total number of plan members of the pension entity or private investment plan that are resident in the participating provinces at that time
      • F is the total number of plan members of the pension entity or private investment plan at that time
    • (ii) in the case of another qualifying master pension entity, the participating provinces member percentage of the other qualifying master pension entity at that time using the formula A ÷ B described in this definition
  • D is the total value at that time of the units of the particular qualifying master pension entity that are held by the pension entity, private investment plan, or other qualifying master pension entity, as the case may be
• B is the total value at that time of the units of the particular qualifying master pension entity

A.21 It is proposed that this definition would apply in respect of any fiscal year of a person that ends after August 9, 2022.

Pension entity

A.22 Pension entity of a pension plan is defined in subsection 123(1) to mean a person in respect of the pension plan that is one of the following:

• (a) a trust governed by the pension plan
• (b) a corporation referred to in paragraph (b) of the definition of pension plan
• (c) a prescribed person (at this time, there are no prescribed persons)

Pension plan

A.23 Pension plan is defined in subsection 123(1) to mean a registered pension plan or a pooled registered pension plan (as defined in subsection 248(1) of the ITA):

• (a) that governs a trust
• (b) for which a corporation:
  • (i) is incorporated and operated either:
    • (A) solely for the administration of the plan
    • (B) for the administration of the plan and for no other purpose other than acting as trustee of, or administering, a trust governed by a retirement compensation arrangement (as defined in subsection 248(1) of the ITA), where the terms of the arrangement provide for benefits only in respect of individuals who are provided with benefits under the plan
  • (ii) in the case of a registered pension plan, is accepted by the Minister, under subparagraph 149(1)(o.1)(ii) of the ITA, as a funding medium for the purpose of the registration of the registered pension plan
  • (iii) in the case of a pooled registered pension plan, is a corporation that meets both of the following conditions:
    • (A) it is described in paragraph 149(1)(o.2) of the ITA
    • (B) all of the shares, and rights to acquire shares, of the capital stock of which are owned, at all times since the date on which it was incorporated, by the pooled registered pension plan
• (c) for which a person is prescribed for the purposes of the definition of pension entity

Plan member

A.24 Plan member of an investment plan that is a private investment plan or a pension entity of a pension plan is defined in subsection 1(1) of the SLFI Regulations to mean an individual who has a right, either immediate or in the future and either absolute or contingent, to receive benefits under:

• (a) in the case of an employee life and health trust, the investment plan
• (b) in the case of a pension entity of a pension plan, the pension plan
• (c) in any other case, the deferred profit sharing plan, the employee benefit plan, the employee trust, the employees profit sharing plan, the RESP, the registered supplementary unemployment benefit plan, or the retirement compensation arrangement, as the case may be, that governs the investment plan

Province

A.25 Province is defined in subsection 123(1) to include a participating province. It also includes British Columbia, Alberta, Saskatchewan, Manitoba, Quebec, Yukon, the Northwest Territories, and Nunavut.

Qualifying master pension entity

A.26 Qualifying master pension entity is proposed to be defined in subsection 7(1) of the SLFI Regulations to mean a master pension entity each unit of which would be held by a pension entity, a private investment plan, or another master pension entity that is a qualifying master pension entity.

A.27 The proposed addition of this definition to subsection 7(1) of the SLFI Regulations would apply in respect of any fiscal year of a person that ends after August 9, 2022.

Series

A.28 Series is defined in subsection 1(1) of the SLFI Regulations to mean:

• (a) for a trust, a class of units of the trust
• (b) for a corporation:
  • (i) a class of the capital stock of the corporation that has not been issued in one or more series
  • (ii) a series of a class of the capital stock of the corporation that has been issued in one or more series
• (c) for a partnership, a class of units of the partnership

Total participating provinces unit value

A.29 Proposed new paragraph 7(4)(a) of the SLFI Regulations provides how to calculate the total participating provinces unit value for purposes of determining whether a qualifying master pension entity is a qualifying private investment plan. The total participating provinces unit value of a particular qualifying master pension entity at any time would be equal to the total of all amounts, each of which is determined as follows for a pension entity of a pension plan, a private investment plan, or another qualifying master pension entity that holds one or more units of the particular qualifying master pension entity:

• (i) in the case of a pension entity or a private investment plan, the amount determined by the following formula:
  • (A ÷ B) × C
  • where:
  • A is one of the following:
    • (A) in the case of a pension entity of a pension plan, part of which is a defined contribution pension plan and the remaining part of which is a defined benefits pension plan, the amount determined by the formula:
      • D + E
      • where:
      • D is the total value at that time of the assets of the defined contribution pension plan that are reasonably attributable to the plan members of the pension entity resident in the participating provinces
      • E is the total value at that time of the actuarial liabilities of the defined benefits pension plan that are reasonably attributable to the plan members of the pension entity resident in the participating provinces
    • (B) in the case of a pension entity of a defined benefits pension plan, other than a pension entity described in clause (A) above, the amount that is the total value at that time of the actuarial liabilities of the pension plan that are reasonably attributable to the plan members of the pension entity resident in the participating provinces
    • (C) in any other case, the amount that is the total value at that time of the assets of the pension plan or the private investment plan that are reasonably attributable to the plan members of the pension entity or private investment plan resident in the participating provinces
  • B is one of the following:
    • (A) in the case of a pension entity of a pension plan, part of which is a defined contribution pension plan and the remaining part of which is a defined benefits pension plan, the amount determined by the formula:
      • F + G
      • where:
      • F is the total value at that time of the assets of the defined contribution pension plan
      • G is the total value at that time of the actuarial liabilities of the defined benefits pension plan
    • (B) in the case of a pension entity of a defined benefits pension plan, other than a pension entity described in clause (A) above, the amount that is the total value at that time of the actuarial liabilities of the pension plan
    • (C) in any other case, the amount that is the total value at that time of the assets of the pension plan or private investment plan
  • C is the total value at that time of the units of the particular qualifying master pension entity that are held by the pension entity or private investment plan
• (ii) in the case of another qualifying master pension entity, the amount that is the total participating provinces unit value of the other qualifying master pension entity at that time, as determined by the formula (A ÷ B) × C described above in this definition

A.30 It is proposed that this definition would apply in respect of any fiscal year of a person that ends after August 9, 2022.

Unit

A.31 Unit is defined in subsection 1(1) of the SLFI Regulations and means:

• (a) for a trust, a unit of the trust
• (b) for a series of a trust, a unit of the trust of that series
• (c) for a corporation, a share of the capital stock of the corporation
• (d) for a series of a corporation, a share of the capital stock of the corporation of that series
• (d.1) for a partnership, an interest of a person in the partnership
• (d.2) for a series of a partnership, a unit of the partnership of that series
• (e) for a segregated fund of an insurer, an interest of a person, other than the insurer, in the segregated fund

Unrecoverable tax amount

A.32 For the purposes of determining whether an investment plan is a QSIP, the unrecoverable tax amount for a reporting period of an investment plan is the amount determined by the following formula, which is in proposed subsection 7(1) of the SLFI Regulations:

• A − B
• where:
• A is the total of all amounts, each of which is:
• • (a) an amount that would be included in the total for Element A of the SAM formula in subsection 225.2(2) for the reporting period if that subsection were read without reference to any adaptation made to it under Part 5 of the SLFI Regulations, if the investment plan were an SLFI throughout the reporting period, and if no tax adjustment transfer election under subsection 55(1) of the SLFI Regulations were in effect throughout the reporting period
  • (b) where the investment plan is a pension entity, an amount of tax that the pension entity would be deemed to have paid under any of subsections 172.1(5) to (7.1) and subparagraph 172.1(8.01)(b)(i) during the reporting period, if the pension entity were an SLFI throughout the reporting period
  • (c) where the investment plan is a pension entity, an amount with respect to a tax adjustment note issued to the pension entity that it would be required by paragraph 232.01(5)(b) or paragraph 232.02(4)(b) to include in its determination of net tax for the reporting period, if the pension entity were an SLFI throughout the reporting period
• B is the total of all amounts, each of which is:
• • (a) an amount that would be included in the total for Element B of the SAM formula in subsection 225.2(2) for the reporting period if that subsection were read without reference to any adaptation made to it under Part 5 of the SLFI Regulations, if the investment plan were an SLFI throughout the reporting period, and if no tax adjustment transfer election under subsection 55(1) of the SLFI Regulations were in effect throughout the reporting period
  • (b) where the investment plan is a pension entity, the federal component amount, within the meaning of section 232.01, of a tax adjustment note issued under subsection 232.01(3) to the pension entity during the reporting period
  • (c) where the investment plan is a pension entity, the federal component amount, within the meaning of section 232.02, of a tax adjustment note issued under subsection 232.02(2) to the pension entity during the reporting period

A.33 The proposed amendment to subsection 7(1) of the SLFI Regulations to add a reference to subparagraph 172.1(8.01)(b)(i) is proposed to apply in respect of any fiscal year of a person that ends after August 9, 2022.

Appendix B – Tips for determining whether a particular investment plan is a selected listed financial institution

B.1 Before referring to the following tips, it is important to first determine whether the particular investment plan is a distributed investment plan that is a stratified or non-stratified investment plan, a private investment plan, a pension entity of a pension plan, or a master pension entity as those terms are defined in Appendix A.

Distributed investment plans

Non-stratified investment plans

B.2 To determine whether a non-stratified investment plan is an SLFI, consider the following:

Step 1: Is the non-stratified investment plan qualified under the laws of Canada or a province to sell or distribute units in at least one participating province or does at least one person resident in a participating province hold one or more units of the investment plan, and is the non-stratified investment plan also qualified under the laws of Canada or a province to sell or distribute units in at least one other province or does at least one person resident in another province hold one or more units of the investment plan?

• If no, then the non-stratified investment plan is not an SLFI.
• If yes, then the non-stratified investment plan may be an SLFI. Go to Step 2.

Step 2: Is the non-stratified investment plan a provincial investment plan under section 11 of the SLFI Regulations? (Refer to the Provincial investment plans section of this memorandum for more information.)

• If yes, then the non-stratified investment plan is not an SLFI.
• If no, then the non-stratified investment plan is an SLFI.

Stratified investment plans

B.3 To determine whether a stratified investment plan is an SLFI, consider the following:

Step 1: Is the stratified investment plan qualified under the laws of Canada or a province to sell or distribute units in at least one participating province or does at least one person resident in a participating province hold one or more units of the investment plan, and is the stratified investment plan also qualified under the laws of Canada or a province to sell or distribute units in at least one other province or does at least one person resident in another province hold one or more units of the investment plan?

• If no, then the stratified investment plan is not an SLFI.
• If yes, then the stratified investment plan may be an SLFI. Go to Step 2.

Step 2: Does section 12 of the SLFI Regulations apply because all of the series of the stratified investment plan are provincial series? (Refer to the Stratified investment plans with provincial series section in this memorandum for more information.)

• If yes, then the stratified investment plan is not an SLFI.
• If no, then the stratified investment plan is an SLFI.

Private investment plans and pension entities

B.4 To determine whether a private investment plan or an investment plan that is a pension entity of a pension plan is an SLFI, consider the following:

Step 1: Does the private investment plan or pension entity of a pension plan have at least one plan member resident in a participating province and at least one plan member resident in another province?

• If no, then the private investment plan or pension entity of a pension plan is not an SLFI.
• If yes, then the private investment plan or pension entity of a pension plan may be an SLFI. Go to Step 2.

Step 2: Is the private investment plan or pension entity of a pension plan a qualifying private investment plan? (Refer to the definitions in Appendix A for more information.)

• If no, then the private investment plan or pension entity of a pension plan may be an SLFI. Go to Step 3.
• If yes, then the private investment plan or pension entity of a pension plan may be an SLFI. Go to Step 4.

Step 3: Is the private investment plan or pension entity of a pension plan a QSIP? (Refer to the definitions in Appendix A for more information.)

• If no, then the private investment plan or pension entity of a pension plan is an SLFI.
• If yes, then the private investment plan or pension entity of a pension plan may be an SLFI. Go to Step 4.

Step 4: Is the private investment plan or pension entity of a pension plan a QSIP or a qualifying private investment plan that is excluded from being a prescribed financial institution under proposed section 10 of the SLFI Regulations? (Refer to paragraph 30 of this memorandum for more information.)

• If yes, then the private investment plan or pension entity of a pension plan would not be an SLFI, unless it has made an election under proposed section 14 of the SLFI Regulations to be treated as an SLFI (refer to paragraphs 35 to 37 of this memorandum for more information).
• If no, then the private investment plan or pension entity of a pension plan would be an SLFI, unless it has made an application under proposed section 15 of the SLFI Regulations, that has been approved by the Minister, to not be considered an SLFI (refer to paragraphs 33 and 34 of this memorandum for more information).

Master pension entities

B.5 To determine whether an investment plan that is a master pension entity is an SLFI, consider the following:

Step 1: Does the master pension entity have a deemed permanent establishment in a participating province and a deemed permanent establishment in another province? (Refer to paragraph 16 of this memorandum for more information.)

• If no, then the master pension entity is not an SLFI.
• If yes, then the master pension entity may be an SLFI. Go to Step 2.

Step 2: Is the master pension entity a qualifying private investment plan? (Refer to the definitions in Appendix A for more information.)

• If no, then the master pension entity is an SLFI.
• If yes, then the master pension entity may be an SLFI. Go to Step 3.

Step 3: Is the master pension entity a qualifying private investment plan that is excluded from being a prescribed financial institution under proposed section 10 of the SLFI Regulations? (Refer to paragraph 30 of this memorandum for more information.)

• If yes, then the master pension entity would not be an SLFI, unless it has made an election under proposed section 14 of the SLFI Regulations to be treated as an SLFI (refer to paragraphs 35 to 37 of this memorandum for more information).
• If no, then the master pension entity would be an SLFI, unless it has made an application under proposed section 15 of the SLFI Regulations, that has been approved by the Minister, to not be considered an SLFI (refer to paragraphs 33 and 34 of this memorandum for more information).

Further information