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I emailed the RCMP Firearms Tech Section and they basically sent me the following
.....The original decision of the Royal Canadian Mounted Police was that a shotgun of the type you are speaking was a modular system and when configured with a pistol grip, regardless of the overall length, it remained a non-restricted firearm.
The Royal Canadian Mounted Police recanted this position at a later period,........
......by combining a barrel from a licensed firearms manufacture that is less than 406mm (16.0") in length and a receiver/frame fitted with a pistol grip only, this firearm may be deemed a "handgun" and therefore "RESTRICTED" under the definition of "restricted firearm"......
......This will need to be determined in a court of law however......
Yeah after you get charged for doing it, and spend tonnes of money trying to fight it
Then they basically said, that the FRT for a pistol grip configuration 870 does exist. And that if you're lucky enough to:
1) get caught
2) have the cops check with the FRT
3) the cops found the FRT with the restricted configuration
4) not be at an approved range