The Pension Investment Association of Canada says it is pleased with the elimination of the foreign property rule in the 2005 Federal Budget.

The Association of Canadian Pension Management has also expressed its pleasure over the government’s announcement.

PIAC says it has been actively involved in advocating for changes to foreign content restrictions for 20 years, beginning in 1986 when foreign content allowances were at only 10%, through to 2001, when levels were raised to 30%.

The foreign property rule issue has been on PIAC’s radar screen for many years and the association has actively pursued its elimination.

PIAC notes that removing the restrictions would provide Canadians with increased diversification advantages amounting to between $1.5 and $3 billion per year.

In response to Wednesday’s announcement, Russell Hiscock, chairman of PIAC’s government relations committee said, “Minister Goodale is to be congratulated for making a decision that will have benefits for all Canadians.”

PIAC represents over 135 Canadian pension funds with combined assets in excess of $500 billion and over 6 million Canadian beneficiaries.