Capital Accumulation Plan (CAP) Guidelines

The Basics

The Capital Accumulation Plan (CAP) guidelines apply to Group Registered Retirement Savings Plans, Deferred Profit Sharing Plans, Defined Contribution Pension Plans, Group Registered Education Savings Plans and Group Tax Free Savings Accounts. The guidelines reflect the current best practices in the industry and define the rights and responsibilities of plan sponsors and members.

CAP Guidelines are based upon three main themes

Governance

A good plan includes clear communication to plan members, clearly defined rules that outline and clarify the rights and responsibilities of CAP sponsors, service providers and CAP members, and the establishment of selection and review criteria for investment options and service providers.

Disclosure

A primary focus is to ensure CAP members are provided with the information and assistance they need to make informed investment decisions.

Harmonization

Wherever possible, the guidelines attempt to harmonize rules covering segregated funds, pooled funds, mutual funds and insurance products to ensure that there is a similar regulatory result for all CAP products and services, regardless of the regulatory regime that applies to them.

Learn more

For more information about CAP Guidelines, contact your Group Plans Sales Team.

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This should not be construed as legal, tax or accounting advice.  This material has been prepared for information purposes only. The tax information provided in this document is general in nature and each client should consult with their own tax advisor, accountant and lawyer before pursuing any strategy described herein as each client’s individual circumstances are unique.  We have endeavored to ensure the accuracy of the information provided at the time that it was written, however, should the information in this document be incorrect or incomplete or should the law or its interpretation change after the date of this document, the advice provided may be incorrect or inappropriate.  There should be no expectation that the information will be updated, supplemented or revised whether as a result of new information, changing circumstances, future events or otherwise.  We are not responsible for errors contained in this document or to anyone who relies on the information contained in this document.  Please consult your own legal and tax advisor.