Regulatory Alerts2019-06-11
AMF Notice on Merger Expectations for Segregated Funds
The Autorité des marchés financiers (AMF) has updated its regulatory expectations to allow segregated funds to merge on a tax-deferred basis, aligning them with mutual fund merger rules. Insurers must now apply section 8.3 of the Guideline to fund mergers, ensuring clear notices are sent to contractholders that detail guarantee assumptions, maturity dates, and cash-out options. These updated expectations will be formally incorporated into the revised Guideline later this year, enabling contractholders to retain guarantee benefits while benefiting from tax deferrals.
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