On September 19, 2014, the federal Department of Finance released draft regulations that if adopted would amend various provisions in the pension fund investment regulations contained in Schedule III of the regulations under the Pension Benefits Standards Act, 1985 (Federal Investment Regulations).

Given that the Federal Investment Regulations are also incorporated into a number of different pension benefits statutes across Canada, these proposals will be relevant not only for federally regulated pension plans but also for plans subject to the pension legislation in a number of the provinces. The proposed changes relate to, among other things, the 10% diversification limit and the related party transaction rules. The proposed regulations are to be released for public consultation with official publication in the Canada Gazette on September 27, 2014.