The 2024 Federal Budget (“Budget 2024’) invited stakeholders to provide suggestions on improving the clarity and coherence of the qualified investments regime for seven types of registered plans: Registered Retirement Savings Plans (“RRSPs”), Registered Retirement Income Funds (“RRIFs”), Tax-Free Savings Accounts (“TFSAs”), Registered Education Savings Plans (“RESPs”), Registered Disability Savings Plans (“RDSPs”), First Home Savings Accounts (“FHSAs”), and Deferred Profit Sharing Plans (“DPSPs”). The qualified investments regime governs what these plans can invest in. A broad range of assets are qualified investments, including mutual funds, publicly-traded securities, government and corporate bonds, and guaranteed investment certificates.
The consultation process initiated by Budget 2024 focused on the following questions:
- Should the rules relating to investments in small businesses be harmonized to apply consistently to all registered savings plans, and if so, how?
- Should annuities that are qualified investments only for RRSPs, RRIFs, and RDSPs continue to be qualified investments?
- Are the conditions that certain pooled investment products must meet to be a qualified investment appropriate, including the ongoing value of maintaining a formal registration process for registered investments?
- Should qualified investment rules promote an increase in Canadian-based investments, and if so, how?
- Are crypto-backed assets appropriate as qualified investments for registered savings plans?
Based on feedback received through the consultation process, the 2025 Federal Budget (“Budget 2025”) proposes certain amendments to simplify the qualified investment rules. Notably, some of the questions raised for discussion in the consultation, such as the appropriateness of crypto-backed assets for registered savings plans, are not reflected in the proposed changes. At this time, there is no indication that the Department of Finance is continuing to consider any submissions from the consultation. Lastly, Budget 2025 does not include a proposal to reduce the mandatory minimum RRIF withdrawal.