TORONTO, Feb. 5, 2014 /CNW/ - The Investment Funds Institute of Canada
(IFIC) released a statement today commending the federal government for
the exemptions and relief it has secured on behalf of Canadian
investors through the Intergovernmental Agreement (IGA) that it has
negotiated with the U.S. government to implement the Foreign Account
Tax Compliance Act (FATCA).
Under the IGA, registered plans, including RRSPs, RRIFs, RESPs, RDSPs
and TFSAs, are exempted from FATCA and will not be reportable. This
will benefit the millions of Canadians who hold mutual funds in these
types of plans.
The agreement safeguards Canadian investors by ensuring that Canadian
financial institutions will not be required to close client accounts or
send any reporting directly to the IRS.
"On behalf of Canadian investors, we want to recognize the government
for its dedication in working to reduce the impact of FATCA on Canadian
investors," stated Joanne De Laurentiis, IFIC's president and CEO. "The
mutual funds industry is committed to a strong, stable investment
sector where investors can realize their financial goals. The
exemptions and relief secured by the Canadian government under the IGA
will provide welcome relief to Canadian investors who may be subject to
U.S. tax rules as they save for retirement and other important life
While the release of the IGA represents a major step, details of how
financial institutions will be required to implement the IGA will be
contained in implementing legislation. We will be reviewing the
legislation and guidelines when they are released.
The Investment Funds Institute of Canada is the voice of Canada's
investment funds industry. IFIC brings together 150 organizations,
including fund managers, distributors and industry service
organizations, to foster a strong, stable investment sector where
investors can realize their financial goals. By connecting Canada's
savers to Canada's economy, our industry contributes significantly to
Canadian economic growth and job creation. The organization is proud to
have served Canada's mutual funds industry and its investors for more
than 50 years.
SOURCE: The Investment Funds Institute of Canada
For further information:
Sara Clodman, Senior Manager, Public Affairs
(email@example.com | 416-309-2317)