Pooled Registered Pension Plans Regulations

Pooled Registered Pension Plans Regulations:

The Pooled Registered Pension Plans Regulations, made under the Pooled Registered Pension Plans Act, came into force on December 14, 2012. The regulations govern the administration and management of pooled registered pension plans (PRPPs) in Canada.

Definitions:
- Act: refers to the Pooled Registered Pension Plans Act.
- Child: includes an individual who is wholly dependent on a person for support and has the custody and control over them.
- Costs: includes fees, levies, and other charges that reduce a member’s return on investment.
- Debt obligation: refers to a bond, debenture, note, or other evidence of indebtedness of an entity.
- Entity: includes corporations, trusts, partnerships, funds, and unincorporated associations.

Key Provisions:

1. Registration: PRPPs must be registered with the Superintendent of Pooled Registered Pension Plans appointed under section 6 of the Pooled Registered Pension Plans Act.


2. Supervision: The regulations require that the administrators of a PRPP hold an insurance policy and submit to regular inspections by the Superintendents.


3. Investment Guidelines: Administrators must not invest more than 10% of the total market value of funds in a member's account in any one person, associated persons, or affiliated corporations.


4. Exemptions: The regulations exempt certain investments from the restrictions on investment by PRPPs.

Designated Provinces and Prescribed Supervisory Authorities:

• The following provinces are designated provinces for the purposes of the Act: Ontario, Quebec, Nova Scotia, New Brunswick, Manitoba, British Columbia, and Saskatchewan.


• The following supervisory authorities are prescribed for the purposes of the Act: Superintendents appointed under section 6 of the Pooled Registered Pension Plans Act.

Licensing:

Administrators must meet certain conditions to be licensed by the Superintendent. These include submitting a five-year business plan that includes information on how they will provide low-cost retirement savings, demonstrating financial resources, and having procedures in place for identifying, managing, and controlling risks associated with PRPPs.

Permitted Investments:

• PRPPs must invest funds in accordance with sections 9 to 14.


• Investments are permitted in mutual funds, pooled funds, segregated funds, trust agreements, custodial agreements, and government securities.