SIMA urges government to strengthen QI rules for investor confidence in registered plans
February 27, 2026 (Toronto) – The Securities and Investment Management Association (SIMA) is calling on the federal government to refine recent tax proposals so that Canadian savers in RRSPs, RRIFs and TFSAs can continue to access a wide range of professionally managed investment funds with confidence.
In a follow-up to its December 2025 submission, SIMA has written to the Department of Finance about draft changes to the rules that determine which investments are allowed in registered plans. While SIMA welcomes the improvements in this latest draft, the association is asking Finance to go further to give investors benefits and more certainty, while avoiding unnecessary disruption to funds.
“Canadians depend on their RRSPs, RRIFs and TFSAs to save for retirement and other long-term goals, and they deserve clear, practical rules that protect them from unexpected tax penalties while still allowing innovation in the investment products they use,” said Andy Mitchell, President and CEO of SIMA. “The proposals are an important step in the right direction, and our recommendations are aimed at preserving choice and stability for investors while giving fund managers workable rules they can follow over time.”
SIMA’s recommendations:
- build in a “safe harbour” for investors so that if a fund falls out of line with certain conditions, investors are not immediately exposed to punitive tax consequences and have time to adjust their holdings
- clarify that funds which are winding up in an orderly way can keep their favourable status while they finish returning money to investors, even if they temporarily hold some hard-to-sell assets
- rely on an overall reasonable-diversification standard, rather than an additional strict concentration test, so that well-diversified funds are not penalized for minor breaches of a percentage limit
- extend to the new fund categories some of the key advantages that apply to “registered investments,” including a two-year safe harbour from the prohibited-investment rules and relief from specific tax-reporting forms (T1141 and T1135).
SIMA’s submission reflects extensive input from member working groups and was approved through its board-level governance process, ensuring the recommendations represent a broad cross section of Canada’s investment management industry.
About SIMA
The Securities and Investment Management Association empowers Canada’s investment industry. The association is the leading voice for the securities and investment management industry, which oversees approximately $4 trillion in assets for over 20 million investors and participates in the Canadian capital markets. Our members—including investment fund managers, investment and mutual fund dealers, capital markets participants, and professional service providers—are committed to creating a resilient, innovative investment sector that fuels long-term economic growth and creates opportunities for all Canadians.
For more information
Christine Harminc
Director, Communications and Public Affairs
charminc@sima-amvi.ca
416-309-2313
