DEFINITION of 'Investment Canada Act - ICA'

A piece of legislation designed to provide for the review of significant investments made in Canada by non-Canadians in order to ensure they benefit Canada. The Investment Canada Act provides regulations pertaining to non-Canadians who acquire control of existing Canadian businesses, or who establish new Canadian businesses. Such individuals or entities must submit a notification or an application for review under the Investment Canada Act.

BREAKING DOWN 'Investment Canada Act - ICA'

A Canadian federal law, the Investment Canada Act governs foreign direct investment within Canada. The act authorizes the Canadian government to prohibit any foreign investments over $299 million (or others of "significant" size, as established by the government) if it is determined that they do not or will not provide a net benefit to Canada. The act went into effect on June 20, 1985, as one of Brian Mulroney's first acts as part of the Progressive Conservative government.

RELATED TERMS
  1. Foreign Plan

    A retirement savings plan created by a person or a company to ...
  2. Canadian Competition Act

    A federal law that governs business practices in Canada. The ...
  3. Canada Savings Bond - CSB

    A financial product issued by the Bank of Canada. It offers a ...
  4. Canadian Securities Institute - ...

    Canada's leading provider of professional credentials and compliance ...
  5. CAD (Canadian Dollar)

    The currency abbreviation or currency symbol for the Canadian ...
  6. Canada Premium Bond - CPB

    A debt instrument issued by the Bank of Canada that offers a ...
Related Articles
  1. Trading

    The Canadian Dollar: What Every Forex Trader Needs To Know

    Canada is becoming an increasingly viable alternative to the U.S. dollar, making it more important in the forex market.
  2. Investing

    3 Reasons Canada's Economy Matters in 2016

    Discover why Canada's 2015 recession matters and why the United States is particularly dependent on a healthy Canadian economy.
  3. Financial Advisor

    Is Now the Right Time to Buy Canadian Stocks?

    Learn about the Canadian stock market and why it has declined over the past five years. Understand if now is a good time to invest in Canadian stocks.
  4. Insights

    The Canadian Economy, At A Glance

    The 12 economic indicators described here together provide a comprehensive picture of the state of the Canadian economy.
  5. Investing

    The Top 3 ETFs For Investing in Canada

    Learn specific information about three of the most popular and best performing ETFs that offer exposure to Canadian equity markets for U.S. investors.
  6. Financial Advisor

    Is the TSX's Sell-off a Buying Opportunity?

    Contrarian investor waiting for a commodity bounce? Why not look north for some value plays?
  7. Investing

    Toronto Stock Exchange: Safest Investment In The World?

    Canada, one of the wealthiest countries, is also one of the safest places to invest.
  8. Financial Advisor

    Looking for Good Investments in Canada? Try These Stocks (BAM, CTC.A)

    Discover why investing in Canadian stocks makes sense and which Canadian companies to invest in even with oil prices at multi-year lows.
  9. Investing

    Canada in Recession

    On September 1, 2015, Statistics Canada reported that the economy has contracted by 0.5% in Q2 2015, after falling 0.8% in previous quarter.
  10. Personal Finance

    3 Reasons to Attend College in Canada

    Attending college in Europe might be the dream, but with low tuition fees and weakening currency, Canada is the financially responsible choice.
RELATED FAQS
  1. How does investing in the banking sector differ between the U.S. and Canada?

    Discover why some investors prefer Canadian to U.S. banks. Learn how trades of Canadian bank shares are executed in both ... Read Answer >>
  2. How does the landscape of the financial services sector in the U.S. compare to Canada?

    Read about the financial services sector in the United States and Canada, two countries that represent each other's largest ... Read Answer >>
  3. What are the most common market indicators to follow the Canadian stock market & ...

    Learn key indicators used by analysts to follow the Canadian stock market and to gauge the condition of the overall Canadian ... Read Answer >>
  4. Who decides to print money in Canada?

    Discover how the Bank of Canada and chartered banks in the country can create new money, and how creating new money causes ... Read Answer >>
  5. Are Canadian Pension Plans inflation-protected?

    Learn about the Canada Pension Plan and how it adjusts its contributions and benefits each year for changes in inflation ... Read Answer >>
Hot Definitions
  1. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  2. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  3. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  4. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  5. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  6. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
Trading Center