TORONTO, Ontario — May 1, 2017
New regulatory changes are coming into effect for Canadian financial service providers this summer and later this year. This Regulatory Update covers the upcoming changes, providing information on CRS Tax Free Savings Account (TFSA) reporting exemption, amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, and upcoming issues concerning the investments industry.
The Canadian Revenue Agency (CRA) has recently confirmed that Tax Free Savings Accounts (TFSAs) are exempt from CRS reporting.
For more information, please see section “3.47, Prescribed non-reporting financial institutions,” of Part XIX of the Income Tax Act in the Canadian Revenue Agency’s Guidance on the Common Reporting Standard.
A number of changes to the Proceeds of Crime and Terrorist Financing Act are coming into effect on July 1, 2017. The changes will primarily affect financial institution business processes and internal policies, but Portfolio+ Inc. will make small software changes to include heads of international organizations (HIOs).
Here are some important considerations for the upcoming change:
Definitions for Politically Exposed Persons (PEPs) and Heads of International Organizations (HIOs) can be found on FINTRAC’s website.
The Canadian investment industry has committed to moving from a trade date plus three business days (T+3) settlement cycle to a trade date plus two business days (T+2) settlement cycle by September 5, 2017.
For more information, visit the CCMA website.
The Saskatchewan Advantage Grant for Education Saving (SAGES) will be suspended after December 31, 2017. Contributors have until the end of December 2017 to make a contribution towards an RESP and be eligible for this grant. Portfolio+ Inc. is currently reviewing changes that may be required to Portfolio Plus.
For more information on SAGES, please visit the Government of Saskatchewan’s website.
Portfolio+ Inc. connects financial institutions with customers and partners using innovative technologies. Its software solutions and open banking technology are used by financial institutions in Canada, Ireland, and the UK. With its powerful +Open Banking Platform and fully documented APIs, Portfolio+ has the power to connect banks, credit unions, and financial institutions with an evolving ecosystem of financial services technology that is putting everyday customers in control of their financial data.
Located in the Greater Toronto Area (GTA), Portfolio+ is used by 6 of the 7 largest financial institutions in Canada and is a part of Volaris Group Inc.