Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

I heard that the investment decisions of LSIFs are controlled by labour unions and government as opposed to business people. Is this correct?

April 26, 2017Business controlled decisions government heard Investment labour unions

0

10 Posted

I heard that the investment decisions of LSIFs are controlled by labour unions and government as opposed to business people. Is this correct?

1 Answer

0

10 Posted

As prescribed in the Income Tax Act, in order to qualify for tax credit status an investment fund must be sponsored by a labour organization. Qualified funds like SaskWorks are granted tax credit assisted status by the federal government and in some cases also by provincial governments. The funds hire professional managers and analysts to undertake investment analysis and make investment recommendations.