Global/US Regulatory Topics
As the financial services marketplace becomes more global, international standards-setting bodies, such as the International Organisation of Securities Commissions (IOSCO), Financial Stability Board (FSB), International Accounting Standards Board (IASB) and the Organisation for Economic Co-operation & Development (OECD), are attempting to align rules and requirements across nations. While for the most part, countries may choose whether to conform, regulators around the world are under increasing pressure to adopt uniform rules.
Canada can pride itself on having one of the world’s most stringent regulatory regimes, one that is uniquely appropriate for our marketplace.
IFIC believes that domestic application of global standards must reflect and support local conditions. Through participation in international bodies such as the International Investment Funds Association (IIFA), IFIC monitors global trends and represents Canada’s interests.
At the same time, IFIC is increasingly engaging in issues arising from efforts by foreign governments to extend their extraterritorial reach.
U.S. tax initiatives such as the Foreign Account Tax Compliance Act (FATCA), and Passive Foreign Investment Company (PFIC) rules potentially harm the ability of American mutual fund investors residing in Canada to save for their retirement by imposing onerous levels of taxation, and creating substantial compliance costs for Canadian mutual fund firms.
IFIC enlists the support of Canadian officials for its direct efforts to exempt Americans residing in Canada from these U.S. tax policies. Other governments, such as France, are launching similar attempts to capture taxes from their citizens who are holding financial accounts in Canada.