Waterloo, Ont.-based Manulife Financial is now licensed to administer federal Pooled Registered Pension Plans, the company announced on Friday. It is the first Canadian company to be issued such a license.
The license was issued by the Office of the Superintendent of Financial Institutions (OSFI). This is the first step for Manulife in its goal of introducing its PRPP product to Canadians.
“I congratulate Manulife on being the first out of the gate to receive official approval to administer PRPPs,” said Kevin Sorenson, minister of state for finance, in a release. “Our government encourages those provinces that haven’t tabled PRPP legislation to do so quickly. All Canadians should be able to take advantage of this new and innovative low-cost savings option. PRPPs will help address a gap in private savings and leave more money in the pockets of savers.”
Manulife’s product will be available to all federally regulated businesses across Canada, including the Yukon, Northwest Territories and Nunavut, once it receives final registration from OSFI and the Canada Revenue Agency. In the territories employees of any business can participate in PRPPs. As well, the product will be open to any business in Saskatchewan and Alberta once those provinces have worked out the proper regulations for implementing their own Pooled Registered Pension Plans (PRPP) Act.
The Government of Canada finalized the PRPP Act regulations in December 2012.