Reflections from the IIFA annual meeting—common challenges and where Canada stands

By: Ian Bragg, Vice-President, Research and Statistics, Securities and Investment Management Association

It was against a backdrop of rising geopolitical tensions, economic uncertainty, and ongoing tariff threats from the United States that SIMA joined global investment fund leaders in Washington, D.C. last month for the semiannual meeting of the International Investment Funds Association (IIFA). With representatives from jurisdictions across Europe, Asia, Australia, Latin America, the U.S. and Canada, the discussions were shaped by a shared concern: how can the investment industry support economic growth, increase savings and build financial security for individuals in an environment of strained public finances and economic uncertainty on one hand and regulatory burden on the other.

Three clear and interconnected themes emerged, each highly relevant to Canada: the need to strengthen capital formation, the importance of addressing the growing burden of financial regulation, and the need to ensure sufficient voluntary savings to support retirement security.

Strengthening capital formation in a fragmented global economy

The imposition of U.S. tariffs and the fragmentation of global trade have sharpened focus on the role of domestic capital markets in driving long-term economic growth. At the IIFA meeting, participants emphasized that investment funds must play a central role in financing innovation, infrastructure, and business expansion.

From the U.S. Treasury to European think tanks, there is increasing recognition that regulation must evolve to enable broader retail investor access to private assets, including private credit, private equity, infrastructure, and real estate. This is especially critical given the capital needs of early-stage and smaller companies, as well as the rapid growth and opportunity in private markets. A shared concern among jurisdictions is the steady decline in the number of public companies.

Canadian regulators acknowledge these challenges and are exploring early steps  to expand access to private markets—an effort that SIMA supports in principle. For example, the Ontario Securities Commission has proposed the development of long-term asset funds (LTAFs) to explore pathways for retail investors to participate in less traditional private investments, including venture capital, private debt and equity, and infrastructure and natural resource projects. Canada’s largest institutional investors, the “Maple 8,” have long been recognized as global leaders in private asset investing. It is now time to extend that opportunity to retail investors through innovative, well-designed, and carefully governed fund structures.

The global push for regulatory efficiency

From Washington to Brussels, regulators and industry leaders have expressed concern that ever-increasing regulatory requirements and growing complexity are increasing costs for investors – both directly and in lost opportunity. Not only does this regulation affect innovation at the company level, it introduces regulatory friction at the investor level and can dissuade participation.

More jurisdictions are asking whether their regulatory systems are fit for purpose and how they can become more proportionate and effective without sacrificing investor protection. We heard how the U.K. has articulated a strategic focus on innovation and growth and has set aggressive targets to reduce regulatory costs by 25 per cent by 2029 to spur growth.

Governments in Canada have articulated many of the same concerns, and we encourage a similar aggressive focus by policymakers and regulators alike.

Voluntary retirement savings: a Canadian strength

Many jurisdictions, particularly those grappling with aging populations and rising pressure on public pension systems, raised concerns about long-term retirement adequacy. Participants emphasized the importance of early engagement, shifting household assets from cash savings into investment funds and other securities, and improving financial literacy, all while building investor confidence—especially among younger demographics.

In 2024, the government of Japan implemented major reforms to its TFSA-like NISA accounts, permanently eliminating taxes on investment gains, significantly expanding contribution limits, and enabling greater diversification of eligible investments.

Canada stands out as a top performer in retirement savings—not only compared to Japan but relative to countries and jurisdictions including the U.S., the U.K., and the EU. Among Canadians between 55 and 64 years of age, 79 per cent hold private pension assets and the median value of all financial assets in this group is an impressive $518,000. This success is underpinned by a well-established system of tax incentives and a strong culture of voluntary saving with widespread participation in investment funds and other securities.

Despite this overall strength, 24 per cent of retired Canadians report difficulty meeting their financial needs, highlighting persistent gaps. Recently SIMA urged the government to modernize its policies by raising the age from 71 to 73 at which Canadians must convert their RRSP into a RRIF to allow more time to grow savings. We also proposed the elimination of mandatory withdrawals for those with $200,000 or less in their RRIFs. Measures like these, along with expanding Canada’s investing culture—particularly among younger generations—will be essential to sustaining long-term retirement security.

Conclusion

The IIFA’s annual meeting made it clear that, with rising fiscal pressures, trade tensions, and geopolitical uncertainty, the core priorities of the investment industry are strikingly consistent across jurisdictions. Canada has a strong foundation to address these challenges. As the national industry association representing asset managers, investment dealers, and capital market participants, SIMA is committed to encouraging governments and regulators to think boldly and act with urgency. Canada has an opportunity to show global leadership by implementing the policy and regulatory changes needed to enhance Canadians’ financial well-being and to ensure that individual investors play an increasingly vital role in driving capital formation and long-term sustainable economic growth.