(April 27 – 10:40 ET) – The Joint Forum of Financial Market Regulators has released for consultation a discussion paper proposing broad regulatory principles for disclosure and other regulatory protection for the millions of Canadians who belong to capital accumulation plans.

CAPs, which include defined contribution pension plans, group registered retirement savings plans, deferred profit sharing plans and employee profit sharing plans, provide investors with a range of investment options to fulfill their goals for retirement.

Three million Canadians have accumulated more than $60 billion in over 40,000 capital accumulation plans, and these numbers are growing.

“There is a growing trend in capital accumulation plans to make members responsible for selecting their own investments,” said Dina Palozzi, chairwoman of the Joint Forum and CEO and Superintendent of Financial Services in Ontario. “These decisions affect their retirement income and underscore the importance of access to clear, objective information about the risks and benefits of different investment options.”

The regulatory principles being proposed by the Joint Forum would offer a similar level of protection to all members of capital accumulation plans, regardless of which jurisdiction’s laws apply or the industry in which the funds are invested.

The discussion paper, entitled Proposed Regulatory Principles for Capital Accumulation Plans recognizes that ultimately the regulatory framework chosen will have to take into consideration the differences between the civil code applicable in Quebec and the common law applicable in the other provinces and territories. In this regard, regulators in Quebec are pursuing their own consultation plan on the recommended principles, in close parallel with other jurisdictions.

Copies of the consultation document and information on the consultation process can be found on provincial regulator web sites.
-IE Staff