By James Langton

(June 16 – 13:00 ET) – Now that the Securities and Exchange Commission has granted relief for brokers to manage the RRSP accounts of snowbirds IFIC will be focusing on
lobbying U.S. state regulators to go along, too, says Investment Funds Institute
of Canada president and CEO Tom Hockin. He made the remarks in a speech to the Mutual Fund Forum.

Currently, 23 states have corresponding legislation. IFIC will be going after the other 27. Hockin noted that legislative relief won’t affect the fund dealers until the Mutual Fund Dealers Association is up and running as a self-regulated organization.

Hockin notes that the Investment Dealers Association hasn’t yet done anything with IFIC’s proposed securities course. He says it has also sent the course to the Canadian Bankers Association’s educational arm for its possible use.

IFIC is also lobbying for increased RRSP limits and working with the Finance Ministry to ensure Income Tax Act changes that will remove punitive tax rules from global money managers. These new rules, coupled with a new contingency fund for money managers, could help build the money management business here in Canada, hopes Hockin.

As previously announced, IFIC’s committee working on a manager contingency fund is now focusing on defining its coverage objectives. He suggests that the fund will be funded by a 1 to 2 basis point tax on assets.

Hockin also spoke of promoting co-operation between industry associations, including those representing segregated funds, pensions, wraps and other products. “Without a broader vision of more than just mutual funds, our careers will be too narrow. Our industry will be too narrow.”