Investment Canada Act - ICA

AAA

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.

INVESTOPEDIA EXPLAINS '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. Overseas Private Investment Corporation ...

    A U.S. government agency that assists businesses looking to invest ...
  2. Canada Revenue Agency - CRA

    A federal agency that collects taxes and administers tax laws ...
  3. Canada Pension Plan - CPP

    One of three levels of Canada's retirement income system, which ...
  4. Foreign Direct Investment - FDI

    An investment made by a company or entity based in one country, ...
  5. Canadian Capital Markets Association ...

    A nonprofit organization that was created to analyze issues arising ...
  6. Book Value Reduction

    Reducing the value at which an asset is carried on the books ...
Related Articles
  1. Segregated Funds: Investment Protection ...
    Options & Futures

    Segregated Funds: Investment Protection ...

  2. NAFTA's Winners And Losers
    Economics

    NAFTA's Winners And Losers

  3. CDIC Protects Canadians From Bank Failure ...
    Retirement

    CDIC Protects Canadians From Bank Failure ...

  4. Payback Period
    Investing

    Payback Period

comments powered by Disqus
Hot Definitions
  1. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  2. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  3. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  4. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  5. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  6. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
Trading Center