Prior to July 2008, only RRSPs and RRIFs issued by life insurance companies were creditor proof.

On July 17, 2008, the regulations under the Wage Earner Protection Act came into force and so has the legislation providing protection to RRSPs.

Briefly, the provisions applicable to RRSPs and RRIFs are as follows:

• Any creditor protection that exists under provincial legislation (e.g., provincial insurance acts) will be recognized federally;
• RRSPs and RRIFs issued by all financial intermediaries will be fully creditor protected, with the exception of contributions made in the 12-month period immediately preceding bankruptcy (this exception does not apply if the RRSP or RRIF is fully protected under provincial legislation); and,
• There will be no cap or ceiling on the amount of RRSP or RRIF funds that may be creditor protected.

As for individually owned non-registered investments, still only insurance company segregated funds, Guaranteed Interest Accounts, and annuities have creditor protection available.

1 Comment for this entry

• Shaneka Cheater January 31st, 2011 on 8:02 pm

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