I-14.01 - Derivatives Act

Section 158 Disposition versions

2009-02-01

158. An adviser who is a portfolio manager and who, in executing a mandate, knowingly participates in

(1)  the making of a loan or provision of a guarantee to a person an officer or director of which is a person described in section 145 or an associate of that person, except with a written authorization given, with full knowledge of the facts, by the client for whom the portfolio is managed,

(2)  the purchase of derivatives having as their underlying interest the securities of a person referred to in paragraph 1, except with a written authorization given, with full knowledge of the facts, by the client for whom the portfolio is managed,

(3)  a derivatives offer or trade or another derivatives transaction with a person described in section 145 or an associate of such a person, or

(4)  the making of a loan or provision of a guarantee to a person described in section 145 or an associate of such a person,

is guilty of an offence.

For the purposes of this section, an “associate” of a person means any company in which the person owns securities representing more than 10 % of a class of shares to which are attached voting rights or an unlimited right to participate in earnings and in the assets on winding-up, any partner of the person, any trust or succession in which the person has a substantial ownership interest or in relation to which the person acts as trustee or liquidator or in a similar capacity, the persons’s spouse, any child of the person or any relative of the person or of the person’s spouse, if that relative shares the person’s residence.

2008, c. 24, s. 158.