News Release

SIMA calls on government to modernize tax rules to keep global investment mandates in Canada

July 22, 2026 (Toronto) – The Securities and Investment Management Association (SIMA) has submitted a proposal to the Department of Finance Canada urging targeted tax reforms to strengthen the international competitiveness of Canada’s asset-management industry and stem the loss of globally mobile investment mandates to competing international financial centres.

In its submission, SIMA outlined two priority reforms: the creation of a new elective Canadian Collective Investment Vehicle (CCIV), modelled on successful fund structures in Ireland and Luxembourg, and the modernization of section 115.2 (safe harbour) of the Income Tax Act, which has not kept pace with the growth of private equity, infrastructure, and alternative investment strategies since it was introduced in 27 years ago.

Canada’s investment-management industry currently oversees approximately $4.5 trillion in assets on behalf of more than 20 million investors and supports over 415,000 Canadian jobs. Despite this scale, SIMA notes that Canada continues to lose mandates to Ireland, Luxembourg, Singapore, the United Kingdom, and the United States, which have built more competitive tax regimes for non-resident investors.

According to economic analysis included in the submission, capturing even a modest share of the projected US$99 trillion global mandate and alternatives pool by 2030, could attract or retain $281 billion in foreign-sourced mandates under Canadian management. This would generate an estimated $1.23 billion in annual Canadian revenue and support 3,510 direct jobs. SIMA also emphasizes that the reforms carry near-zero fiscal cost since the income involved is not currently taxed in Canada.

This submission builds on SIMA’s broader advocacy for capital markets competitiveness. In May this year, SIMA made a pre-budget submission calling for a coordinated approach to strengthening capital formation, including regulatory modernization, improved market access, and enhanced tax competitiveness, along with recommendations on retirement savings policy, such as raising the RRSP-to-RRIF conversion age and enabling automatic enrollment in workplace savings plans.

“Canada has the regulatory credibility, talent, and institutional depth to compete for globally mobile capital,” said Andy Mitchell, President and CEO, SIMA. “What we are missing is a tax framework that makes Canada the rational choice for global investors and asset managers. These reforms are practical, largely defensive, and carry no meaningful cost to the treasury, but the cost of inaction is real in jobs, expertise, and capital continuing to migrate to Dublin, Luxembourg, and Singapore.”

SIMA is requesting an early meeting with Tax Policy Branch officials, inclusion of asset-management competitiveness as a named theme in the 2026 federal budget pre-consultation process, and an opportunity to collaborate with Finance on independent modelling of the proposal’s economic impact.

About SIMA

The Securities and Investment Management Association empowers Canada’s investment industry. It is the leading voice for the securities and investment management industry, which oversees approximately $4.5 trillion in assets for over 20 million investors and Canadian capital markets participants. SIMA members—including investment fund managers, investment and mutual fund dealers, capital markets participants, and professional service providers—are committed to creating a resilient, innovative investment sector that fuels long-term economic growth and creates opportunities for all Canadians.

For more information

Christine Harminc
Director, Communications and Public Affairs
charminc@sima-amvi.ca
416-309-2313