Three of the country’s largest pension fund managers are concerned about regulatory requirements that would designate them as systemically important.
While the Ontario Teachers’ Pension Plan, the Ontario Municipal Employees Retirement System and the Healthcare of Ontario Pension Plan recognize appropriate oversight and management of systemic risk is important to the stability of Canada’s financial markets, they believe pension funds and pension fund managers “are qualitatively different from other market intermediaries and do not pose systemic risk.”
The comments were made in a comment letter on the consultation draft of the Capital Markets Stability Act to Finance Minister Joe Oliver.
They also note pension funds and pension fund managers “are already prudentially regulated or subject to a comprehensive statutory framework, with the central requirement to be a prudent investor.”
The act is currently under review and hasn’t been adopted.
The letter is on the Cooperative Capital Markets Regulatory System’s website.
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