BILL 38

An Act to Amend the New Brunswick Investment Management Corporation Act

Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:

1The New Brunswick Investment Management Corporation Act, chapter N-6.01 of the Acts of New Brunswick, 1994, is amended by adding after section 16 the following:

Pooled investment funds

16.1(1)The Corporation may establish and administer pooled investment funds in which the following may be combined in common for the purposes of investment:

(a)the assets, in whole or in part, of any of the funds referred to in subsection 14(1);

(b)any funds for which the Corporation acts as trustee under section 16;

(c)any funds for which the Corporation provides investment counselling services under section 16 if the trustee of those funds agrees to the pooling of the funds; or

(d)some or all of the assets and funds under paragraphs (a) to (c).

16.1(2)The Corporation shall act as the trustee for

(a)a pooled investment fund in which the assets, in whole or in part, of any of the funds referred to in subsection 14(1) are combined,

(b)a pooled investment fund in which any funds for which the Corporation acts as trustee under section 16 are combined,

(c)a pooled investment fund in which any funds for which the Corporation provides investment counselling services under section 16 are combined if the trustee of those funds agrees to the pooling of the funds, and

(d)a pooled investment fund in which some or all of the assets and funds under paragraphs (1)(a) to (c) are combined.

16.1(3)Any pooled investment fund referred to in paragraph (2)(a), (b), (c) or (d), as the case may, shall be held in trust by the Corporation.

2Section 17 of the Act is amended

(a)by adding after subsection (1) the following:

17(1.1)Notwithstanding any provision in the Act or instrument establishing a fund referred to in subsection 14(1) or any provision in an agreement entered into under section 16, the Corporation shall invest the money in a pooled investment fund referred to in subsection 16.1(2) in accordance with the Trustees Act.

(b)by repealing subsection (2) and substituting the following:

17(2)Subject to subsections (1) and (1.1), the Corporation shall develop and adhere to a statement of investment policies and guidelines for each of the funds referred to in subsection 14(1) and for each of the pooled investment funds referred to in subsection 16.1(2).

(c)by repealing subsection (3) and substituting the following:

17(3)The statement of investment policies and guidelines shall, with respect to the fund or pooled investment fund for which it has been developed and subject to subsections (1) and (1.1), describe the purpose and objectives of the fund or pooled investment fund, the duties of the persons responsible for the management and administration of the fund or pooled investment fund and the manner in which investments are to be considered and made.

3Subsection 19(1) of the Act is repealed and the following is substituted:

19(1)The Corporation shall maintain a separate account for each of the funds referred to in subsection 14(1) and section 15, for any fund in respect of which an agreement has been entered into under section 16 and for each of the pooled investment funds referred to in subsection 16.1(2).

4Section 20 of the Act is amended

(a)by repealing subsection (2) and substituting the following:

20(2)The Corporation may charge each fund referred to in subsection 14(1) and the Minister or such other person who may be the trustee of a fund referred to in section 15 such fees as are necessary for the purposes of subsection (1).

(b)by adding after subsection (2) the following:

20(2.1)The Corporation may charge the person with whom an agreement has been entered into under section 16 such fees as are provided for in the agreement.

5Section 26 of the Act is amended by adding "and each pooled investment fund referred to in subsection 16.1(2)" after "section 16".

6Section 27 of the Act is amended

(a)by repealing subsection (3) and substituting the following:

27(3)The Corporation shall, within six months after the end of each fiscal year, submit to the Minister or to such other person who may be the trustee of a fund referred to in section 15, as the case may be, a detailed report pertaining to the funds for which the Minister is the trustee or the funds for which another person is the trustee, respectively, containing such information in relation to the funds as may be required by the Minister or other person, as the case may be.

(b)by adding after subsection (3) the following:

27(3.1)The Corporation shall, at the time specified in an agreement entered into under section 16, submit to the person with whom the agreement was entered into a detailed report pertaining to the funds under the agreement containing the information provided for in the agreement.

7(1)The First Schedule of the Public Service Labour Relations Act, chapter P-25 of the Revised Statutes, 1973, is amended

(a)in Part I by striking out

New Brunswick Investment Management Corporation

(b)in Part IV by adding after

New Brunswick Highway Corporation

the following:

New Brunswick Investment Management Corporation

7(2)Any collective agreement existing on the commencement of this section between Her Majesty in right of the Province as represented by the Board of Management and any bargaining agent for employees employed by the New Brunswick Investment Management Corporation shall be deemed to be a valid and binding agreement between the bargaining agent and Her Majesty in right of the Province as represented by the New Brunswick Investment Management Corporation insofar as the agreement applies to employees of the New Brunswick Investment Management Corporation.

EXPLANATORY NOTES

Section 1

Under the new section 16.1 of the New Brunswick Investment Management Corporation Act, the New Brunswick Investment Management Corporation is authorized to establish and administer pooled investment funds in relation to funds referred to in subsection 14(1) and section 16 of the Act. The Corporation is the trustee of pooled investment funds and such funds are held in trust by the Corporation.

Section 2

(a)The New Brunswick Investment Management Corporation must invest pooled investment funds in accordance with the Trustees Act.

(b)A statement of investment policies and guidelines must by developed by the New Brunswick Investment Management Corporation for each of the pooled investment funds. The existing provision is as follows:

17(2)Subject to subsection (1), the Corporation shall develop and adhere to a statement of investment policies and guidelines for each of the funds referred to in subsection 14(1).

(c)The amendment is consequential on the amendment made in paragraph 2(b) of this amending Act. The existing provision is as follows:

17(3)The statement of investment policies and guidelines shall, with respect to the fund for which it has been developed and subject to subsection (1), describe the purpose and objectives of the fund, the duties of the persons responsible for the management and administration of the fund and the manner in which investments are to be considered and made.

Section 3

The New Brunswick Investment Management Corporation must maintain a separate account for each of the pooled investment funds. The existing provision is as follows:

19(1)The Corporation shall maintain a separate account for each of the funds referred to in subsection 14(1) and section 15 and for any fund in respect of which an agreement has been entered into under section 16.

Section 4

(a)The amendment is consequential on the amendment made in paragraph 4(b) of this amending Act. The existing provision is as follows:

20(2)The Corporation may charge each fund referred to in subsection 14(1), the Minister or such other person who may be the trustee of a fund referred to in section 15 and the person with whom an agreement has been entered into under section 16 such fees as are necessary for the purposes of subsection (1).

(b)The New Brunswick Investment Management Corporation may charge the person with whom an agreement has been entered into under section 16 of the New Brunswick Investment Management Corporation Act such fees as are provided for in the agreement.

Section 5

Accounts of the pooled investment funds must be audited. The existing provision is as follows:

26The accounts of the Corporation and the accounts of each fund referred to in subsection 14(1) and section 15 or in respect of which an agreement has been entered into under section 16 shall be audited at least once a year by an auditor appointed by the Corporation.

Section 6

(a)The amendment is consequential on the amendment made in paragraph 6(b) of this amending Act. The existing provision is as follows:

27(3)The Corporation shall, within six months after the end of each fiscal year, submit to the Minister, to such other person who may be the trustee of a fund referred to in section 15 or to the person with whom an agreement has been entered into under section 16, as the case may be, a detailed report pertaining to the funds for which the Minister is the trustee, the funds for which another person is the trustee or the funds in respect of which the person has entered into an agreement under section 16, respectively, containing such information in relation to the funds as may be required by the Minister or other person, as the case may be.

(b)The report pertaining to the funds under an agreement referred to in section 16 of the New Brunswick Investment Management Corporation Act is prepared and submitted by the New Brunswick Investment Management Corporation in accordance with the agreement.

Section 7

(1)(a) and (b)The New Brunswick Investment Management Corporation is moved from Part I of the First Schedule of the Public Service Labour Relations Act to Part IV of that Schedule.

(2)Transitional provision. The amendment is consequential on the amendment made in subsection 7(1) of this amending Act.

Chapter Outline Update

Section 1

Add after s.16 the following:

Pooled investment funds 16.1

Sections 2 to 6

No change required.

Section 7: Public Service Labour Relations Act

No change required.

Endorse: Hon. Edmond P. Blanchard, Q.C.


Last Modified: 10:47am , February 04, 1998