Canada Revenue Agency
www.cra.gc.ca
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Self-directed RRSPs
If you want to, you can control the assets of your RRSP and make the investment decisions yourself.
Your financial institution can tell you if it offers self-directed RRSPs. The issuer (such as a bank, credit union, trust, or insurance company) can take care of the administrative details, including getting the plan registered, receiving the amounts you contribute, and trading securities. Securities cannot be held in your own name.
Qualified Investments
Common types of qualified investments for a trust governed by an RRSP or RRIF include: money, guaranteed investment certificates (GICs), government and corporate bonds, mutual funds, and securities listed on a designated stock exchange.
For more information, see Interpretation Bulletin IT-320R, Qualified Investments - Trusts Governed by Registered Retirement Savings Plans, Registered Education Savings Plans and Registered Retirement Income Funds, or contact your RRSP issuer.
You should pay particular attention to the type of investments you choose for the plan. If you buy non-qualified investments in your RRSP or if qualified investments held in your RRSP become non-qualified, there are tax implications.
Important notice
Under proposed changes, modifications will be made to the existing tax rules that apply when an RRSP or RRIF acquires a non-qualified investment. The proposed changes also include the introduction of a special tax on the annuitant of an RRSP or RRIF that acquires a prohibited investment.
Note
You do not need to report any transactions for items held in your RRSP. For example, you do not report interest earned in the RRSP on your tax return, as this is an investment transaction of the RRSP itself. However, any money you remove from the plan is no longer sheltered from taxation and you must report it on your return.
