45-507 - Exempt Distributions - Self-Directed Registered Education Savings Plans

Securities Act
R.S.P.E.I. 1988, Cap-S-3.1

Document Type: Local Rule
Document No: 45-507
Subject: Exempt Distributions - Self-Directed Registered Education Savings Plan
Effective Date: March 17, 2008

Local Rule 45-507 Exempt Distributions - Self-Directed Registered Education Savings Plan

Part 1 Definitions

1.1 In this Rule:

“RESP” has the meaning ascribed to “registered education savings plan” in the ITA;

“self-directed RESP” means and RESP

(a) that is structured so that contributions by a subscriber to the plan are deposited directly into an account in the name of the subscriber, and

(b) under which the subscriber maintains control and direction over the plan that enables the subscriber to direct how the assets of the plan are to be held, invested or reinvested subject to compliance with the ITA;

“subscriber” means a person who signs an application form for a self-directed RESP.

Part 2 Exemption from the Registration and Prospectus Requirements

2.1 Sections 86 and 94 of the Act do not apply to a trade in a self-directed RESP to a subscriber if the application form provided to a subscriber for purposes of establishing the self-directed RESP includes, or is accompanied by, a copy of the provisions of the self-directed RESP and any additional documentation that may be necessary to provide disclosure of the following:

1. The income tax consequences of investing in a self-directed RESP.

2. The responsibilities of the trustee under the self-directed RESP.

3. The refund provisions.

4. The types of investments in which the assets of the self-directed RESP may be invested or reinvested.

5. The procedures for designation of and the persons who may be designated as beneficiaries under the self-directed RESP.

6. The nature of any payments that may be made by the self-directed RESP to a beneficiary under the self-directed RESP.

7. Any fees and charges associated with participation in the self-directed RESP.

Part 3 Effective Date

3.1 This Rule comes into force on March 17, 2008.