PMAC asks Morneau to delay corporate-class tax changes

PMAC has submitted a letter to finance minister Bill Morneau requesting the government delay implementation of new rules, set to kick in October 1, that remove the key tax benefit of corporate-class mutual funds.

By Staff | April 14, 2016 | Last updated on April 14, 2016

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The Portfolio Management Association of Canada (PMAC) has submitted a letter to finance minister Bill Morneau requesting the government delay implementation of new rules, set to kick in October 1, that remove the key tax benefit of corporate-class mutual funds.

Read: Mutual fund corporations lose tax advantage

“We believe transition rules are desirable to ensure that investors are equipped and informed of any decisions about their corporate class fund investments, including triggering unplanned switches or other consequential actions such as redemptions or dispositions,” the PMAC letter states.

“In addition, there are a number of operational and regulatory consequences to the investment industry in addition to costs and systems implications which can arise for investment fund managers and investors.”

The industry group is asking for a delay of six to 12 months.

Read the full letter here.

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