(June 7 – 15:40 ET) – The United States Securities and Exchange Commission has agreed to exempt Canadian Investment Dealers from U.S. registration requirements to permit Canadian dealers to manage Canadian tax-advantaged accounts (RRSPs and RRIFs) of Canadians who are resident in the U.S. The IDA has been working with the SEC to obtain such relief since U.S. State Securities Regulators approved a similar provision in 1995.
This exemption means that Canadian dealers do not need to become registered under U.S. Federal law in order to continue to deal with the RRSPs and RRIFs of clients who have moved to the U.S. The measure will clarify the requirements for dealing with such accounts and provide relief to clients who have had their investment options restricted until the issue was resolved.
The SEC will now also permit RRSP accounts of Canadian residents in the U.S. to hold any security including Canadian mutual funds qualified for inclusion in an RRSP.
-IE Staff