iAtoday

The group retirement savings industry evolves rapidly, as are the expectations of regulators. In 2024, the Canadian Association of Pension Supervisory Authorities (CAPSA) published Guideline No. 3 for Capital Accumulation Plans (the “Guideline”), which provides a framework for governance and management practices with respect to capital accumulation plans. It sets the new standard for managing plans and their risks. These changes are designed to improve protection for plan members and to ensure that decisions are made in their best interests, based on solid, transparent foundations.

The revised Guideline emphasizes the following elements:

• Greater rigour in the selection and monitoring of service providers, particularly with respect to investments and administrative services.
• More structured governance, with documented processes and a framework for regular monitoring.
• Transparent communication with plan members so that they can make informed decisions.

We have created this leaflet to provide you with a clear and practical summary of the changes to the Guideline. The aim of the new Guideline goes beyond mere regulatory compliance. It also seeks to raise standards in order to enhance the wellbeing of plan members. It is essential to follow the Guideline’s recommendations to meet client expectations.