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
- Canada savings bonds and provincial savings bonds
- mutual funds
- most securities listed on a designated stock exchange
For more information, refer to Income Tax Folio S3-F10-C1, Qualified Investments – RRSPs, RESPs, RRIFs, RDSPs and TFSAs 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 RRIF, or if qualified investments held in your RRSP or RRIF become non-qualified, there are tax implications. The rules include a tax on the annuitant of an RRSP or a RRIF that acquires a prohibited investment. For more information, refer to Anti-avoidance rules for RRSPs and RRIFs.