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ARTICLE · 07 FEBRUARY 2012

Proposed Pooled Registered Pension Plans: Potential Market Changer?

The federal government recently published draft legislation to create pooled registered pension plans ("PRPP").

CanadaEmployment and HR

The federal government recently published draft legislation to create pooled registered pension plans ("PRPP"). The aim of the legislation is to provide employees and self employed individuals with a low cost means of saving for their retirement.  It is expected that the provinces will implement their own enabling legislation in conjunction with the federal legislation.

Fasken Martineau anticipates that the new PRPP program has the potential to be a market changer. Mutual fund complexes may be at risk of suffering reduced assets under management as funds flow toward PRPPs. Institutions who can qualify to be administrators need to be preparing to enter into this market. Portfolio managers should be exploring asset management opportunities with potential administrators.

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