(November 21, 2008) Finance Secretary Jim Flaherty asked all federally regulated financial institutions to help spread the word that seniors are not required to sell assets held in registered retirement funds.
“Many seniors are understandably concerned about the impact of the recent deterioration in market conditions on their financial security, and I believe it is important to ensure that they do not face unnecessary obstacles in managing their assets during these difficult times,” Flaherty said in an open statement letter.
He further indicated that required RRIF distributions can be made in kind, with the investor simply transferring assets from a registered account to an unregistered account. There is no requirement to sell the investment. Flaherty expressed concern that some financial institutions are not advising customers of this option.
“To solve this problem, I expect that all financial institutions will accept in-kind transfers – at no cost to customers – or offer another solution that achieves the same result,” he wrote. “I am asking that all customers with a RRIF be made aware of this option.”
He gave federally regulated companies a Nov. 28 deadline to confirm they are advising clients on this strategy and facilitating in-kind transfers at no cost.
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BC introduces regulations to protect registered funds
(November 21, 2008) The Government of British Columbia has introduced legislation to protect registered funds from creditors.
Will introduce amendments to the above Act on the execution of court orders and Retirement Benefits Standards Act to prevent creditors from taking over registered pension savings schemes and similar funds under other registered schemes.
The government will also introduce changes to section Law and Equality Act in anticipation of a new tax-free savings account to ensure that the beneficiary designation is honored in the event of the account holder’s death.
These and other proposed amendments are part of the province’s 10-point economic plan — announced last month — designed to help keep British Columbia’s economy stable during the global financial crisis.
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In October, the edges of CPI growth will decline
(November 21, 2008) According to StatsCan, Canada’s inflation rate fell in October, with the Consumer Price Index rising 2.6% over the 12 months, down from 3.4% in September.
Although the price of gasoline fell in October amid falling oil prices, the price at gas stations continued to be the largest contributor to CPI growth over the past 12 months, rising 13.3%. In September, the 12-month price increase was 26.5%
Excluding energy, CPI has increased 1.8% since October 2007.
Declines in the purchase and leasing prices of passenger vehicles, women’s clothing, and computer equipment and materials contributed to balancing gas and food prices.
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MFS announces job cuts
(November 21, 2008) MFS Investment Management, a division of Sun Life, plans to eliminate approximately 90 jobs across the organization, representing approximately 5% of its workforce.
The reduction is in response to the deterioration in capital markets over the past 12 months, which has impacted the Boston-based company’s assets under management, and is part of an overall effort to keep costs in line with revenues.
MFS says the cuts will help it weather the current market downturn, continue to invest in business opportunities to serve the company’s customers, and emerge as a strong and competitive company when the economy ultimately recovers.
Earlier this week, long-distance rival Putnam Investments announced it would reduce its workforce by 2%.
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RBC changes the composition of segment funds
(November 21, 2008) RBC Insurance announced several enhancements to its segregated funds product, effective October 1, 2008.
The changes include two new fund options – RBC Balanced Growth GIF and RBC O’Shaughnessy All-Canadian Equity GIF – and a change to the underlying investments of RBC’s guaranteed investment portfolios.
“We believe these enhancements to our segregated funds product offering will be appreciated by clients seeking investment options that leverage the proven experience and world-class investment management of RBC Asset Management Inc, one of Canada’s premier money managers,” said Tony Bagnato, vice president of management property, RBC Life Insurance Company.
(21/11/08)
