On March 1, 2011 the Canadian Association of Pension Supervisory Authorities (“CAPSA”) published its Guideline No. 5: Guideline on Fund Holder Arrangements.
Guideline No. 5 is intended to clarify the nature of fund holder arrangements and their related responsibilities. It addresses the two basic types of fund holder arrangements: trusts and insurance contracts. Guideline No. 5 expands on CAPSA Guideline No. 4: Pension Plan Governance Guidelines and Self-Assessment Questionnaire (published in October 2004) by highlighting the governance principles related to fund holder arrangements. It addresses permitted types of fund holder arrangements, the respective roles and responsibilities of key players and provides information on what regulators look for when examining fund holder arrangements.