Investment Regulations

Regulation

Registration: R-090-2001
Source: Unofficial consolidation PDF (justice.gov.nt.ca)
Under: Financial Administration Act

This is an unofficial reading copy parsed from the Department of Justice consolidation PDF above — itself an office consolidation, not an official statement of the law. The authoritative text is in the Revised Statutes of the Northwest Territories, 1988 and the annual Statutes volumes.

s.1 amended by R-040-2016,s.2 in force April 1, 2016
s.2 amended by R-040-2016,s.3 in force April 1, 2016
s.4 amended by R-030-2021,s.2,3
s.5 amended by R-030-2021,s.5
s.6 amended by R-030-2021,s.2,4
s.7 amended by R-030-2021,s.2,3,4
s.10 amended by R-040-2016,s.4 in force April 1, 2016
s.12 amended by S.N.W.T. 1999, c.2, comes into force

Contents

1. 1 2. 2 3. 3 4. 4 5. 5 6. 6 7. 7 8. 8 9. 9 10. 10 11. 11 12. 12

The Commissioner, on the recommendation of the Board, under section 107 of the Financial Administration Act and every enabling power makes the Investment Regulations.

REGULATIONS

(1) In these regulations,

"Act" means the Financial Administration Act; (Loi)

"investment pool" means the investment pool of monies established under investment pool agreements; (fonds d’investissement commun)

"investment pool agreement" means an agreement entered into between the Government of the Northwest Territories and a public agency which establishes an investment pool and authorizes the Government of the Northwest Territories to invest the monies comprising the investment pool. (accord sur le fonds d’investissement commun)

(2) These regulations apply only in respect of those securities referred to in subsections 51(1) and 52(1) of the Act. R-040-2016,s.2.

(1) The Minister of Finance may, under section 51 of the Act, only invest surplus money standing to the credit of the Consolidated Revenue Fund with an issuer of securities that, under these regulations,

(a) is classified as an acceptable issuer; and

(b) meets the minimum standard of credit worthiness required of an issuer.

(2) A public agency may, under section 52 of the Act, only invest money belonging to the public agency with an issuer of securities referred to in subsection (1). R-040-2016,s.3.

The Government of Canada and its unconditionally guaranteed agencies are acceptable issuers of securities and, notwithstanding paragraph 2(1)(b), are not required to meet the minimum standard of credit worthiness required of issuers of securities under these regulations.

(1) The Government of the Northwest Territories, the government of a province or the government of a territory, and their respective unconditionally guaranteed agencies, are acceptable issuers of short term paper if they meet a standard of credit worthiness that is better than or equal to a rating of "R-1 Low" from DBRS Limited.

(2) The Government of the Northwest Territories, the government of a province or the government of a territory, and their respective unconditionally guaranteed agencies, are acceptable issuers of bonds if they meet a standard of credit worthiness that is better than or equal to a rating of "A" from DBRS Limited.

(3) If the Government of the Northwest Territories, the government of a province or the government of a territory and their respective unconditionally guaranteed agencies have a credit rating that varies in respect of different security issues or if the credit rating of the Government of the Northwest Territories, the government of a province or the government of a territory differs from the credit rating of their respective unconditionally guaranteed agencies, the minimum acceptable standard of credit worthiness must be better than or equal to a rating of "R-1 Low" from DBRS Limited.

(4) A bond issued by the Government of the Northwest Territories, the government of a province or the government of a territory and their respective unconditionally guaranteed agencies with a remaining term to maturity of 365 days or less shall be considered short term paper and the issuer shall be subject to the standard of credit worthiness set out in subsection (1). R-030-2021,s.2,3.

(1) A bank listed in Schedule II of the Bank Act (Canada) is an acceptable issuer of short term paper and bonds if it is unconditionally guaranteed by its foreign parent and meets the following minimum standards of credit worthiness:

(a) the audited total assets of the bank or its unconditionally guaranteed entity for the most recent fiscal year exceed $25 billion;

(b) the bank or its unconditionally guaranteed entity indicates an audited after-tax profit before any special provisions for loan losses in each of the two most recent fiscal years;

(c) the bank or its unconditionally guaranteed entity possesses a credit rating of "R-1 Low" or better from DBRS Limited.

(2) A bank listed in Schedule I of the Bank Act (Canada) and any of its unconditionally guaranteed entities are acceptable issuers of bonds if they meet a minimum standard of credit worthiness of "A" from DBRS Limited. R-030-2021,s.5.

A bank listed under Schedule II of the Bank Act (Canada) is an acceptable issuer of short term paper and bonds if it is unconditionally guaranteed by its foreign parent and meets the following standards of credit worthiness:

(a) the audited total assets of the foreign parent’s consolidated operations for the most recent fiscal year exceed $75 billion;

(b) the foreign parent’s consolidated operations indicate an audited after-tax profit in each of the two most recent fiscal years;

R-030-2021,s.2,4.

(1) A municipal corporation in Canada is an acceptable issuer of short term paper and bonds if it meets the standard of credit worthiness that is better than or equal to a rating of "R-1 Middle" from DBRS Limited.

(2) A municipal corporation in Canada is an acceptable issuer of bonds if it meets a standard of credit worthiness that is better than or equal to a rating of "A" from DBRS Limited. R-030-2021,s.2,3,4.

The total amount of the investment pool that may be invested with any one acceptable issuer are limited as follows:

(a) the greater of $10 million or 50% of the investment pool with any one federal public agency or other issuer referred to in section 3 or 4;

(b) the greater of $5 million or 35% of the investment pool with any one issuer referred to in section 5;

(d) the greater of $5 million or 10% of the investment pool with any one issuer referred to in section 7.

(1) A term deposit that matures in five days or less is not subject to the issuer limits set out in paragraph 8(b) or (c).

(2) A term deposit that matures in five days or less and that is held with a bank listed under Schedule I of the Bank Act (Canada) may be determined independently of all other holdings but shall be limited to no more than 50% of the investment pool.

(3) A term deposit that matures in five days or less and that is held with a bank listed under Schedule II of the Bank Act (Canada) and unconditionally guaranteed by the foreign parent may be determined independently of all other holdings but shall be limited to no more than 25% of the investment pool.

10.

A public agency may, under section 52 of the Act, only invest the money belonging to the public agency that is not part of the investment pool with any one acceptable issuer in accordance with the following limitations:

(a) not more than $10 million may be invested with any one agency of the Government of Canada or with any other issuer referred to in section 3 or 4;

(b) not more than $5 million may be invested with any one issuer referred to in section 5, 6 or 7.

R-040-2016,s.4.

11.

The limits set out in sections 8, 9 and 10 only apply on the date that a security is acquired or is taken as collateral and do not apply over the period of time that the security is held.

12.

These regulations come into force on the day on which sections 3 to 6 of An Act to Amend the Financial Administration Act, S.N.W.T. 1999, c.2, comes into force.