本文发表在 rolia.net 枫下论坛What are the regulations on holding foreign currencies in RSPs?
Regulations allowing foreign currencies in RSPs are recent. In 2001, the CRA (Canada Revenue Agency) amended tax laws to allow foreign currency holdings. In June, 2005, the CRA removed the 30% foreign property cap in registered savings plans. On April 1, 2006, the IDA (Investment Dealers Association of Canada), the Canadian financial industry regulator, classified currencies as allowable assets in RSPs. This opened the door for Questrade's USD in RSP.
Why do banks and brokerages do forced currency conversions when trading U.S. securities in registered accounts?
The legal ability to hold currencies other than the Canadian dollar in registered accounts only came into effect on April 1st, 2006. But that was only one hurdle. The other is the technology available to maintain books and records (clearing capability), which is used by the majority of North American financial institutions, including Questrade, to clear trades. The software was not designed to hold multiple currencies in registered accounts. As a result, there is simply no way for the software to encode U.S. currency, therefore preventing anything but Canadian dollars from being entered as cash in the account.
That said, there has been little to no corporate will to solve this problem. It would be a switch-over on a massive scale and it would eliminate a major revenue stream for brokerages and banks.
Are forced currency conversions in registered accounts legal?
In April, 2006, the IDA removed the final hurdle to holding multiple currencies in registered accounts and investors were technically permitted to hold U.S. dollars. However the mechanism to do so was not rolled out, and forced currency conversions remained standard procedure. The legality of forced currency conversion is being challenged in two Canadian courts.更多精彩文章及讨论，请光临枫下论坛 rolia.net
Regulations allowing foreign currencies in RSPs are recent. In 2001, the CRA (Canada Revenue Agency) amended tax laws to allow foreign currency holdings. In June, 2005, the CRA removed the 30% foreign property cap in registered savings plans. On April 1, 2006, the IDA (Investment Dealers Association of Canada), the Canadian financial industry regulator, classified currencies as allowable assets in RSPs. This opened the door for Questrade's USD in RSP.
Why do banks and brokerages do forced currency conversions when trading U.S. securities in registered accounts?
The legal ability to hold currencies other than the Canadian dollar in registered accounts only came into effect on April 1st, 2006. But that was only one hurdle. The other is the technology available to maintain books and records (clearing capability), which is used by the majority of North American financial institutions, including Questrade, to clear trades. The software was not designed to hold multiple currencies in registered accounts. As a result, there is simply no way for the software to encode U.S. currency, therefore preventing anything but Canadian dollars from being entered as cash in the account.
That said, there has been little to no corporate will to solve this problem. It would be a switch-over on a massive scale and it would eliminate a major revenue stream for brokerages and banks.
Are forced currency conversions in registered accounts legal?
In April, 2006, the IDA removed the final hurdle to holding multiple currencies in registered accounts and investors were technically permitted to hold U.S. dollars. However the mechanism to do so was not rolled out, and forced currency conversions remained standard procedure. The legality of forced currency conversion is being challenged in two Canadian courts.更多精彩文章及讨论，请光临枫下论坛 rolia.net