Software for creating and administering Registered Disability Savings Plans (RDSPs).
On December 14, 2007, the Registered Disability Savings Plan (RDSP) received royal assent within the Canadian House of Commons and Senate. With an estimated 700,000 disabled people in Canada there was much to celebrate, especially by the folks at Planned Lifetime Advocacy Network (PLAN)—who lobbied 8 years for this legislation to succeed! SIT wants to congratulate all those involved in this multi-year effort. Now it's time to make the RDSP a reality.
Why are there so few vendors coming forward to offer solutions for complex legislative programs like RDSP and RESP? That's an easy question to answer. These Canadian, legislative-centric investment plans (like RDSP and RESP) require very sophisticated programming to implement the large set of rules behind the legislation. And that's not the only challenge. These government-controlled rules can change from year to year. This complexity, coupled with the limited Canadian market, is why we believe so few vendors dared to take on the challenge that SIT has. We did it because we support the legislation and because it highlights our strength in investment software products.
Our advice (from an administration perspective) is to be prepared for last minute changes from the Canadian Revenue Agency (CRA). Why does this happen so frequently with new legislation?
If you have a "systems background" you'll understand. Any government that tables creative, compassionate and complex legislation (like the RDSP) and implements that legislation within a year is going to miss a few things. That's just reality. In addition, there is ongoing pressure from constituents to fine-tune this legislation over time. Often these changes are decided in the last month of a tax year (December). So if you're going to offer investment products like RDSP and RESP, you'll have to get comfortable with these ongoing changes and you'll need a good business partner who is experienced in these matters. That's where SIT comes in.