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CANADA’S NEWS SOURCE FOR FINANCIAL PROFESSIONALS
MID-OCTOBER 2020
20 PAGES
INVESTING
Tensions high ahead of U.S. election
BY FIONA COLLIE
markets can get rocky
leading up to any election, but ten- sions are running particularly high ahead of the presidential election in the U.S., where a polarized elec- torate, civil unrest and the ongoing Covid-19 pandemic have created a charged environment.
Peter Hardy, vice president and senior client portfolio man- ager with Kansas City, Mo.-based American Century Investment Services Inc., says “the divisive- ness of this election, the uncer- tainty due to Covid and the rhetoric around election results
> TURN TO CORPORATE / PAGE 6
INSIDE
NEWS
UNCERTAINTY ABOUNDS
Market watchers weigh in on the U.S. election. PG. 1
UNDER THE MICROSCOPE
Regulators are keeping close tabs on DSC sales. PG. 1
ADDRESSING THE DEFICIT
Will mounting government spending necessitate tax hikes? PG. 1
PROTECTING INVESTORS
FAIR Canada has faced its share of challenges, but Jean-Paul Bureaud isn’t fazed by them. PG. 7
BYB
WHAT IF THE DEMS WIN?
How a Biden victory could affect your clients. PG. 12
NEW REPORTING RULES
Changes to trust reporting requirements take effect in the 2021 tax year. PG. 13
OBSTACLE COURSE
The pandemic has made tax audits even more unpleasant. PG. 14
STUCK IN THE MUD
The Tax Court of Canada is trudging through a backlog of cases. PG. 14
PRODUCTS
TIME TO SHINE Gold and other precious metals have sparkled during the pandemic. PG. 17
INSIGHT
ONTARIO BLEW IT
The province’s business- friendly priorities leave investors vulnerable. PG. 18
GOODIE BAG The Liberals’ throne speech had something for everyone — except fiscal hawks. PG. 18
A NEW LEADER
PAUL LAWRENCE
Jean-Paul Bureaud is the new executive director of FAIR Canada. (See story on page 7.)
TAX
Facing deficit, Grits may target wealthy
INVESTOR PROTECTION
Spending promises could lead to higher taxes, experts warn
BY RUDY MEZZETTA
wealthy and high-income
Canadians may face higher taxes in the years ahead, tax experts say, as Ottawa tries to address a
ballooning fiscal deficit created by the extension of Covid-19 relief benefits and other ambi- tious spending initiatives.
But when taxes would in- crease remains to be seen. Aaron Wudrick, federal director of the Canadian Taxpayers Federation in Ottawa, says he expects the Liberals to limit themselves to modest tax policy changes in their upcoming fiscal update,
> TURN TO LIBERALS / PAGE 4
Regulators watching DSC sales ahead of ban
Concerns have intensified because of the pandemic
BY JAMES LANGTON
as regulators move to ban
embedded mutual fund fees, they’re warning the industry against “inappropriate” sales of deferred sales charge (DSC) funds. But deciphering what’s appro- priate for a product soon to be a pariah isn’t straightforward.
The Canadian Securities > TURN TO DSC / PAGE 6
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