Investment options

The investment options available for PRPPs are similar to those available for other registered plans, but there are some restrictions. The Income Tax Act does limit the type of investments that can be held in a PRPP to prevent tax avoidance planning. For example, a member cannot hold restricted investments in a PRPP such as their mortgage or debts, and shares of companies in which members have a significant interest.

Further investment options may be limited by the federal or provincial PRPP supervisory authorities. For more information, see Pension supervisory authorities.