Company News

CNSX named “Designated Stock Exchange”

By IE Staff |

The Canadian National Stock Exchange has been added to the list of “Designated Stock Exchanges”, allowing securities listed on the exchange to automatically be eligible for registered accounts such as RRSPs and Tax-free Savings Accounts, CNSX Markets Inc. said Tuesday.

The designation, made by federal Finance Minister Jim Flaherty, came into effect on Jan. 1, under the Income Tax Act.

CNSX says it is the first stock exchange to achieve this designation since the new criteria and process were announced in July 2008. Accordingly, CNSX will be added to the list of designated exchanges posted on the Department of Finance Web site.

“This designation levels the playing field among stock exchanges in Canada and means that CNSX is competitive in all respects, including allowing investors the ability to buy and hold CNSX-listed securities in their RRSPs and their TFSAs, just as they do with other securities. Along with CNSX’s listing cost advantages and streamlined regulatory model, this will encourage more companies to choose to list on CNSX,” said Rob Cook, president of CNSX.

By virtue of being so designated by Canada’s finance minister, CNSX has also become a “recognised stock exchange” in the United Kingdom under the Income Tax Act 2007. This will make the exchange more attractive as a listing venue for Eurobonds and other debt products issued in the UK, CNSX says. As well, it will make CNSX listed securities more attractive for investors using some forms of tax-advantaged savings accounts in the UK.