September 20, 2005 15:55 ET

TrustInvestor: Investor Confidence Shaken by Government Announcement

TORONTO, ONTARIO--(CCNMatthews - Sept. 20, 2005) - Trust investors have reacted to the announcement by the Federal Department of Finance that says it will delay its response to requests for tax rulings by companies wanting to convert into a trust structure.

Leslie Hayman, Editor and Publisher of said that, "Investors welcomed the September 8 release of a Consultation Paper on flow-through entities. It appeared the government was open to thoughtful consideration of tax and other policies that affect investors including seniors, many whom rely on these kinds of securities for income. We fully expect to provide feedback through that process."

"Not a month passed. And we have seen a form of back-tracking on the process defined to clarify questions hanging over markets," said Hayman. "This confuses investors about the integrity of intent and government leadership in both the consultation process and in the stability of our tax and regulatory environment."

Hayman observed, "With this news, our government appears to have shaken investor confidence in it and financial markets in addition to dividend-paying investments. We see early evidence of damage to the value of holdings for existing and potential trust investors. Although not yet widespread in its effect, this change has had direct deleterious impact on individuals like you and me."

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