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20% Foreign Property Rule: Increasing Risk and Decreasing Returns on RRSPs and RPPs

The 1999 budget provided an opportunity for the federal government to create the conditions under which Canadians could improve their investment returns and, at the same time, reduce portfolio risk through increased diversification. This they could have done by eliminating the Foreign Property Rule (FPR). Instead, bound to an antiquated and discredited industrial policy, the federal government chose to maintain the FPR.

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