Form 14 - Statement of Investment Policies and Procedures (SIPP

Form 14 - Statement of Investment Policies and
Procedures (SIPP) Information Summary
Financial Services
Commission
of Ontario
Approved by the Superintendent of Financial Services pursuant to the
Pension Benefits Act, R.S.O. 1990, c.P.8, as amended (the "PBA")
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Instructions
All applicable questions must be completed. See the User Guide for further instructions for completing this form. This form
contains the following six parts:
Part 1: General Information. To be completed for all filings.
Part 2: Defined Benefit Provisions. To be completed for defined benefit provisions only.
Part 3: Member-Directed Defined Contribution Provisions. To be completed for member-directed defined contribution
provisions only.
Part 4: Administrator-Directed Defined Contribution Provisions. To be completed for administrator-directed defined
contribution provisions only.
Part 5: Compliance with Environmental, Social & Governance (ESG) Disclosure Requirements. To be completed for all filings.
Part 6: Certification. To be completed for all filings.
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© Queen's Printer for Ontario, 2015
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Part 1: General Information. This part must be completed for all filings.
(101) Registration number
(102) Name of registered plan
(103) Name of employer/plan sponsor
(104) Indicate the plan provisions covered by the SIPP that you are filing: (Select all that apply.)
Defined benefit
Member-directed defined contribution
Administrator-directed defined contribution
(105) Select the appropriate response:
This is the initial filing of the SIPP with FSCO. (Proceed to question 108.)
The SIPP has been filed previously with FSCO, and I am filing an amendment to the SIPP.
(Proceed to question 106.)
(106) Where you are filing an amendment to the SIPP, indicate whether the amendment:
Contains only minor/housekeeping changes. (Proceed to question 108.)
Contains substantive changes. (Proceed to question 107.)
(107) If you are filing an amendment to the SIPP that contains substantive changes, summarize the key changes below:
(108) Indicate the following dates, where applicable:
Date the SIPP was first established: (yyyy/mm/dd)
Date the most recent SIPP amendment was made: (yyyy/mm/dd)
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Part 2: Defined Benefit Provisions. Complete for defined benefit (DB) provisions only.
Master Trust Funds
(201) Indicate if the plan’s assets are invested in a master trust:
Yes
No
(202) If you answered “Yes” to question 201, select the following that applies to the SIPP being filed:
The administrator has formally adopted the investment policy of the master trust (which meets the
requirements for a SIPP) as the SIPP for the plan.
The administrator has established a separate SIPP for the plan.
Compliance with Federal Investment Regulations
The Federal Investment Regulations (FIR) are defined in section 66 of the Regulation as sections 6, 7, 7.1 and 7.2 and
Schedule III to the federal Pension Benefits Standards Regulation, 1985 (PBSR) made under the Pension Benefits Standards
Act, 1985 (Canada) as they may be amended from time to time. The FIR are incorporated by reference in sections 78 and 79
of the Regulation. Questions 203 to 205 relate to the requirements of sections 7.1 and 7.2 of the PBSR.
(203) The SIPP contains provisions that address the following items, as prescribed in section 7.1(1) of the PBSR: (Select all
that apply.)
Categories of investments and loans, including derivatives, options and futures.
Diversification of the investment portfolio.
Asset mix and rate of return expectations.
Liquidity of investments.
The lending of cash or securities.
The retention or delegation of voting rights acquired through plan investments.
The method of, and basis for, the valuation of investments that are not regularly traded at a marketplace.
Related party transactions permitted under section 17 of Schedule III and the criteria to be used to establish
whether a transaction is nominal or immaterial to the plan.
(204) Section 7.1(1)(h) of the PBSR requires that the SIPP specify criteria for determining whether a transaction with a related
party is nominal or immaterial. Describe these criteria as specified in the SIPP using the fields below, as applicable:
a) Indicate the criteria, where expressed as a percentage of total assets:
b) Indicate the criteria, where expressed as a maximum dollar value:
%
$
c) Indicate the criteria, where expressed otherwise:
(205) Has the administrator provided a copy of the most recent SIPP and any amendments to the actuary to the plan, as
required by section 7.1(3) and 7.2(2) of the PBSR?
Yes
No
Investment Policy Questions
(206) How is the expected rate of return expressed in the SIPP?
As a nominal rate of return. (Complete question 207.)
As a real rate of return. (Complete question 207.)
As a rate of return above the Consumer Price Index. (Complete question 207.)
None of the above apply. (If "none of the above apply", complete question 208.)
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(207) a) Indicate the percentage used to express the expected rate of return:
%
b) Indicate the number of years over which the expected rate of return is to be measured:
c) Provide any other relevant information concerning the expected rate of return (e.g., basis of measurement,
assumptions):
(208) Describe the expected rate of return if you selected “None of the above apply” in question 206:
(209) Under the terms of the SIPP, what is the frequency with which the administrator must monitor the performance of the
plan’s investment managers?
Monthly
Quarterly
Not specified in the SIPP
Other
If you selected “other”, provide details:
(210) Indicate whether the SIPP explicitly permits, does not permit, or does not address the following investment practices:
Permitted
Not Permitted
Not Addressed
a) The use of derivatives for risk management purposes:
b) The use of derivatives for other purposes (e.g., to obtain exposure
to various asset classes or sectors):
c) Lending of securities or cash. (Lending of securities or cash must be
addressed in the SIPP, as per section 7.1(1) of the PBSR.):
d) Short-selling of securities:
e) Borrowing for investment in real properties or other purposes:
f) Investment in buy-in annuities:
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Asset Classes
(211) Based on the information set out in the SIPP, complete the following table by providing asset allocation targets for each
asset class, and where specified, the asset allocation ranges and benchmark for each asset class. Asset classes must
be selected from the drop down menus provided. Targets and ranges should be expressed as percentages.
NOTE: Complete the table based on the information contained in the SIPP.
Asset Classes
Asset Allocation
Target (%)
Asset Allocation Range
Minimum (%)
Maximum (%)
Asset Class Benchmark
Each asset class must be selected from the drop down menus provided in the first column of each row. The drop down
menu contains the following choices:
• Cash and Cash Equivalent
• Balanced Portfolio
• Real Assets
• Fixed Income
• Public Equities
• Real Estate
• Fixed Income - Mortgages
• Public Equities - Canadian
• Alternatives
• Fixed Income - Canadian Bonds
• Public Equities - United States
• Hedge Funds
• Fixed Income - Long Bonds
• Public Equities - Foreign (Non
Canadian)
• Public Equities - International
(EAFE)
• Infrastructure
• Fixed Income - Foreign Bonds
• Fixed Income - High Yield Bonds
• Public Equities - Emerging Markets
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• Venture Capital
• Other Asset Class (you will be
asked to specify the class)
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Part 3: Member-Directed Defined Contribution Provisions.
Complete for member-directed defined contribution (DC) provision only.
Investment Policy Questions
(301) Is the number of investment funds offered under the DC provision specified in the SIPP?
Yes
No
If you answered “Yes” above, complete either question (a) or (b) below:
a) If specified in the SIPP as a single number, indicate the
number of investment funds offered under the DC provision:
b) If specified in the SIPP as a range, indicate the minimum and
maximum number of investment funds offered under the DC provision:
Minimum:
Maximum:
(302) Does the SIPP list or describe the investment funds offered to DC participants?
Yes
No
(303) Describe the asset class or investment vehicle which best describes the default option, as specified in the SIPP:
Money market
Fixed income
Balanced fund
Target date fund
Life cycle fund
Not specified in the SIPP
Other
If you selected “Other”, provide details:
(304) Under the terms of the SIPP, what is the frequency with which the administrator must monitor the performance of
investment funds?
Monthly
Quarterly
Not specified in the SIPP
Other
If you selected “Other”, provide details:
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Note: FSCO’s Investment Guidance Note on Statements of Investment Policies and Procedures (SIPPs) for MemberDirected Defined Contribution Plans states that the administrator should give due consideration to addressing certain
information in the SIPP for the DC provision. The items are listed below in question 305, and described in further detail in the
guidance note.
(305) The SIPP contains provisions that address the following: (Select all that apply.)
General investment principles.
Permitted asset classes from which investment funds can be selected.
The default investment option for member accounts where no selection is made.
Selecting, monitoring, and terminating investment managers and funds.
Plan expenses and investment fees related to the DC plan/provision.
Related party transactions.
Information guidelines for plan members on investment options.
Asset Classes
(306) Indicate which of the following investment vehicles or asset classes are permitted by the SIPP: (Select all that apply.)
Life cycle funds
Target date funds
Cash and cash equivalent
Fixed income
Public equities
Real estate
Alternatives
Not specified in the SIPP
Other asset classes
If you selected “Other”, provide details:
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Part 4: Administrator-Directed Defined Contribution Provisions.
Complete for administrator-directed defined contribution (DC) provision only.
Compliance with Federal Investment Regulations
The Federal Investment Regulations (FIR) are defined in section 66 of the Regulation as sections 6, 7, 7.1 and 7.2 and
Schedule III to the federal Pension Benefits Standards Regulation, 1985 (PBSR) made under the Pension Benefits Standards
Act, 1985 (Canada) as they may be amended from time to time. The FIR are incorporated by reference in sections 78 and 79
of the Regulation. Questions 401 and 402 relate to the requirements of sections 7.1 and 7.2 of the PBSR.
(401) The SIPP contains provisions that address the following items, as prescribed in section 7.1(1) of the PBSR: (Select all
that apply.)
Categories of investments and loans, including derivatives, options and futures.
Diversification of the investment portfolio.
Asset mix and rate of return expectations.
Liquidity of investments.
The lending of cash or securities.
The retention or delegation of voting rights acquired through plan investments.
The method of, and basis for, the valuation of investments that are not regularly traded at a marketplace.
Related party transactions permitted under section 17 of Schedule III and the criteria to be used to establish
whether a transaction is nominal or immaterial to the plan.
(402) Section 7.1(1)(h) of the PBSR requires that the SIPP specify criteria for determining whether a transaction with a related
party is nominal or immaterial. Describe these criteria as specified in the SIPP using the fields below, as applicable:
a) Indicate the criteria, where expressed as a percentage of total assets:
b) Indicate the criteria, where expressed as a maximum dollar value:
%
$
c) Indicate the criteria, where expressed otherwise:
Investment Policy Questions
(403) How is the expected rate of return expressed in the SIPP?
As a nominal rate of return. (Complete question 404.)
As a real rate of return. (Complete question 404.)
As a rate of return above the Consumer Price Index. (Complete question 404.)
None of the above apply. (If "none of the above apply", complete question 405.)
(404) a) Indicate the percentage used to express the expected rate of return:
%
b) Indicate the number of years over which the expected rate of return is to be measured:
c) Provide any other relevant information concerning the expected rate of return (e.g., basis of measurement,
assumptions):
(405) Describe the expected rate of return if you selected “None of the above apply” in question 403:
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(406) Under the terms of the SIPP, what is the frequency with which the administrator must monitor the performance of the
plan’s investment managers?
Monthly
Quarterly
Not specified in the SIPP
Other
If you selected “Other”, provide details:
(407) Indicate whether the SIPP explicitly permits, does not permit, or does not address the following investment practices:
Permitted
Not Permitted
Not Addressed
a) The use of derivatives for risk management purposes:
b) The use of derivatives for other purposes (e.g., to obtain exposure
to various asset classes or sectors):
c) Lending of securities or cash. (Lending of securities or cash must be
addressed in the SIPP, as per section 7.1(1) of the PBSR.):
d) Short-selling of securities:
e) Borrowing for investment in real properties or other purposes:
f) Investment in buy-in annuities:
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Asset Classes
(408) Based on the information set out in the SIPP, complete the following table by providing asset allocation targets for each
asset class, and where specified, the asset allocation ranges and benchmark for each asset class. Asset classes must
be selected from the drop down menus provided. Targets and ranges should be expressed as percentages.
NOTE: Complete the table based on the information contained in the SIPP.
Asset Classes
Asset Allocation
Target (%)
Asset Allocation Range
Minimum (%)
Maximum (%)
Asset Class Benchmark
Each asset class must be selected from the drop down menus provided in the first column of each row. The drop down
menu contains the following choices:
• Cash and Cash Equivalent
• Balanced Portfolio
• Real Assets
• Fixed Income
• Public Equities
• Real Estate
• Fixed Income - Mortgages
• Public Equities - Canadian
• Alternatives
• Fixed Income - Canadian Bonds
• Public Equities - United States
• Hedge Funds
• Fixed Income - Long Bonds
• Public Equities - Foreign (Non
Canadian)
• Public Equities - International
(EAFE)
• Infrastructure
• Fixed Income - Foreign Bonds
• Fixed Income - High Yield Bonds
• Public Equities - Emerging Markets
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• Venture Capital
• Other Asset Class (you will be
asked to specify the class)
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Part 5: Compliance with Environmental, Social & Governance (ESG) Disclosure Requirements.
This part must be completed for all filings.
(501) Indicate the nature of the disclosure concerning ESG factors that is made in the SIPP, as required by section 78(3) of
the Regulation:
The SIPP states that ESG factors ARE incorporated into the plan’s investment policies and procedures.
(Proceed to question 502.)
The SIPP states that ESG factors ARE NOT incorporated into the plan’s investment policies and procedures.
(Proceed to question 503.)
(502) If the SIPP states that ESG factors ARE incorporated into the plan’s investment policies and procedures, does the SIPP
include a description of how those factors are incorporated, as required by section 78(3) of the Regulation?
Yes
No
(503) Indicate the relevant section or page number from the SIPP where information concerning ESG factors is disclosed:
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Part 6: Certification. This part must be completed for all filings.
(601) Registration number
(602) Name of registered plan
(603) Name of administrator
(604) Dated on (yyyy/mm/dd)
(605) I certify that:
a) I am the authorized representative of the administrator of the pension plan or agent of the administrator;
b) The information contained in this Statement of Investment Policies and Procedures Information Summary is
true, accurate and complete to the best of my knowledge and belief;
c) The statement of investment policies and procedures being filed with this form complies with the requirements
of the Pension Benefits Act (Ontario) and Regulation 909; and
d) The terms and provisions of the statement of investment policies and procedures being filed with this form
are consistent with the investment requirements set out in Schedule III to the Pension Benefits Standards
Regulations, 1985, as modified in sections 47.8 and 79 of Regulation 909 of the Pension Benefits Act
(Ontario).
(606) Full name of the authorized representative of the administrator or administrator’s agent
(607) Title of the authorized representative of the administrator or administrator’s agent
(608) Employer of the authorized representative
(609) Telephone number
(610) E-mail address
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