Monday, November 03, 2008

British Columbia Government Announces Plan to Exempt RRSPs From Creditors

The Provincial Government announced on Saturday that it plans to exempt funds in Registered Retirement Savings Plans from seizure by creditors. Here is an excerpt from the press release:

The Province will act to protect from creditors RRSP investments that are made with banks, just as they are protected now with insurance companies. The Province will introduce legislation to exempt RRSPs and similar prescribed plans from seizure by creditors. Currently, investments with insurance companies are protected from seizure. This will provide the same protection for RRSPs invested in banks. The current law is unfair, as pension and insurance products that are essentially identical to RRSPs are exempt from seizure. It will also end the inconsistent treatment of RRSPs under provincial law and federal law.

I note that this is an announcement only, and the Province has not brought in legislation or regulation exempting RRSPs as of the date of this post.

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