2016 Federal Budget

Important Message

The federal Budget delivered on March 22, 2016 proposes a number of measures that will impact certain income tax considerations associated with an investment in notes linked to the performance of a reference asset such as the Bank’s principal protected notes and non-principal protected notes, including those already issued. Pursuant to the proposed measures, the return on a linked note would retain the same character whether it is earned at maturity or results from a sale on a secondary market or other disposition. This means that it would not be possible for investors to realize a capital gain on the disposition of a linked note prior to maturity, and any return generated by such disposition would be treated as interest income.

The measures will apply to all linked notes that are sold by a holder after December 31, 2016, irrespective of the date on which they were issued.

The foregoing is not intended as a recommendation to take any particular action with respect to your linked notes and is not intended to constitute, nor should it be relied upon or construed as, tax advice nor is it exhaustive of all possible Canadian federal income tax considerations in relation to an investment in linked notes. Investors are strongly urged to consult their tax advisors as to the overall consequences of the measures announced in the 2016 federal Budget and the acquisition, ownership and disposition of linked notes, having regard to their particular circumstances.