Canadian Retirement Savings Plans and the Foreign Property Rule
Bibliographic Data
| ID | 11970217 |
|---|---|
| Authors | David F Burgess (corresponding author), David Burgess (0000-0003-4430-5351), Joel Fried |
| Year | 1999 |
| Volume | 25 |
| Issue | 3 |
| Pages | 395-395 |
| Publication date | 1999-09-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Canadian Public Policy (JOURNAL) |
| Journal identifiers | ISSN: 0317-0861 • E-ISSN: 1911-9917 |
| Publisher | JSTOR (PUBLISHER) |
| DOI | 10.2307/3551527 |
| OpenAlex | W2053306911 |
| Language | EN |
| Citations received | 1 |
| References cited | 4 |
This paper argues that the Foreign Property Rule (FPR), which limits the foreign content of a Registered Savings Plan to no more than 20 percent of book value, should be removed as quickly as possible. Given the globalization of financial markets, the FPR does not protect what it is meant to protect - a pool of savings for investment in Canada. Instead, it distorts the allocation of credit among firms, and forces agents to use more costly instruments - derivatives - to achieve desired foreign risk exposure. Since the FPR lowers the return on registered savings without benefiting any identifiable group, removing it would be an unequivocal gain to Canadians
Business · Economics · Law and economics · Property (philosophy · Banking stability, regulation, efficiency · Financial Literacy, Pension, Retirement Analysis · Housing Market and Economics
| Unique citing works | 1 |
|---|---|
| Citations per year | 0.2 |
| Citation span | 2021 - 2021 (1) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 1 |