The Personal Financial Planner's Manual™
Summary of Contents of Update 67

The FPSC® Code of Ethics was revised as of December 2011. The revision was quite substantial with the addition of a principle and many changes to the rules.

The FPSC® Code of Ethics is included in the Standards of Professional Responsibility, which can be found at https://www.fpsc.ca/node/20635.

The Standards of Professional Responsibility are the compilation of four sets of standards to which CFP professionals and FPSC Registered Candidates must adhere: the FPSC® Code of Ethics, FPSC® Rules of Conduct, FPSC® Fitness Standards, and FPSC® Financial Planning Practice Standards.

The FPSC® Financial Planning Practice Standards were revised as of December 2011. The revision included the splitting of one standard into two and some wording changes of form, more than substance.

The FPSC® Financial Planning Practice Standards are included in the Standards of Professional Responsibility, which can be found at https://www.fpsc.ca/node/20635.

However, the interpretations and explanations of the Standards were not included in the Standards of Professional Responsibility and can be found at https://www.fpsc.ca/sites/ fpsc.ca/files/documents/PracticeStandardsJan2010.pdf.
 

The following changes have been passed into law, the details have been added to the Chapter and the Chapter has been updated to include the 2012 rates.

Eligible beneficiaries with a shortened life expectancy can access their savings in a Registered Disability Savings Plan (RDSP) by making annual withdrawals without requiring the repayment of the assistance holdback amount, subject to specified limits and certain conditions (ITA 146.4).

The rollover rules allow a rollover of the proceeds from a deceased individual's registered retirement savings plan (RRSP), registered retirement income fund (RRIF) or registered pension plan (RPP) to the RDSP of a child or grandchild of the deceased who has been financially dependent on the deceased by reason of infirmity.
 

This Chapter has been updated to include the 2012 federal and provincial personal income tax rates and credits.
 

As of March 22, 2011, split income includes capital gains realized by, or included in the income of, a minor from a disposition of shares of a corporation to a person who does not deal at arm's length with the minor, if taxable dividends on the shares would have been subject to the tax on split income.

Capital gains that are subject to this measure will be treated as dividends and will not benefit from capital gains inclusion rates nor qualify for the lifetime capital gains exemption (ITA 120.4).

The amount that would otherwise have been the individual's capital gain in respect of the disposition will be deemed to be a taxable dividend received by the individual, the taxable dividend will not be an eligible dividend and the corporation will be considered not to have paid a dividend.

This Chapter has been updated to include current examples.
 

This Chapter has been updated for the 2012 benefit and contribution rates.

The Guaranteed Income Supplement Top-Up Benefit is an additional benefit under the Old Age Security Program for seniors with little or no income other than Old Age Security and the Guaranteed Income Supplement or Allowance. This benefit was introduced effect as of July 1, 2011. The details of the benefit are included in the Chapter.

You should pay particular attention to the changes to the Canada Pension Plan coming into force in 2012 with the removal of the work cessation test, the increase in the general low earnings drop-out, the new requirement to make CPP contributions until 65 years of age and the increase in the actuarial adjustments for early CPP retirement benefits from 0.5% per month to 0.7%.
 

This Chapter dealing with the rollover of RRSPs, RRIFs and RDSPs to a qualified beneficiary, the taxation of other registered plans, deemed dispositions upon death, and deductions and tax credits has been updated.

The rollover rules now allow a rollover of the proceeds from a deceased individual's registered retirement savings plan (RRSP), registered retirement income fund (RRIF) or registered pension plan (RPP) to the RDSP of a child or grandchild of the deceased who has been financially dependent on the deceased by reason of infirmity.

This Chapter has been updated to include the new rollover rules and current examples.
 

The Chapter has been updated for the 2012 federal income tax factors, contribution limits for registered plans, prescribed interest rates, Canada Pension Plan contribution rates, Old Age Security benefits, automobile deductions and benefits, and the latest statistics on the Consumer Price Index.