November 22, 2022
While pension funds may not require OSFI’s permission for every asset transfer, the regulator still wants to be kept up to speed. That’s the gist of the Office of the Superintendent of Financial Institutions’ recent draft guideline for Defined Contribution Asset Transfers.
Specifically, defined contribution plan administrators don’t have to obtain OSFI’s permission to complete an asset transfer that pertains to members in included employment, as long as the transfer is not to a pooled registration plan.
That said, there are a few caveats. For one, OSFI still expects to be notified, and administrators still need to ensure that the rights and interests of the affected individuals are preserved. Second, if the transfer includes assets of individuals whose pension benefits are subject to provincial pension legislation, then in most cases plan administrators require permission from the federal Superintendent.
For more details around OSFI’s expectations, click on more information for the full draft guideline: