How much foreign investment can my RRSP hold?

I have a Canadian RRSP that is mainly invested in a Canadian corperation that has been bought by a foreign company. I have been notified that my shares would be exchanged for common shares of the new parent company. This would put my portfolio to a 90% foreign content. Can I leagally go through this transaction? And how will this affect my regular 30% investment in foreign markets I regularely maintain?

The 30% foreign content limitation applicable to RRSPs was eliminated effective January 1, 2005. Therefore this acqusition of your principal investment by a non-resident will not disqualify your RRSP

Further information is available at the following internet website

http://www.cra-arc.gc.ca/tax/individuals...

TimH

Tim is correct... the foreign content limit has been removed and you can now have 100% of your foreign content within your RRSP.

Just remember that now you could be exposed to more risk due to the currency of the investment being not in Canadian $.

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　　Fund Performance 　　Fund Manager 　　Fund Management 　　Forex 　　Foreign Investment 　　Financial Investment 　　Fidelity Investment 　　Fidelity Fund

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