The Investment Funds Institute of Canada says it is pleased that the federal budget bill eliminating the foreign property rule for RRSPs and other tax-deferred savings plans has received royal assent.

Bill C-43 received royal assent on Wednesday.

Several mutual fund firms, including Fidelity, AIM Trimark, and Clarington have moved to terminate their RRSP clone funds in response to the change.

“We are delighted that the budget bill passed at this time. Canadians can only benefit from more flexibility and enhanced access to foreign markets as they make investment decisions for their future,” said John Murray, IFIC vice president, regulation & corporate affairs, in a release.

However, IFIC cautions investors from making rash revisions to their portfolios in response to the elimination of the FPR. “We advise investors, however, that changes to their portfolios should be appropriate to their current circumstances and objectives and recommend speaking to an advisor before making a major change,” Murray added.

http://www.ific.ca