RRSP Q&A: Are Canadians protected if iShares goes under? - MoneySense

RRSP Q&A: Are Canadians protected if iShares goes under?

Answers to your RRSP questions.

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From February 16 to 19, 2010, MoneySense.ca’s top financial planners are answering your RRSP questions. For the full list of questions answered — or to submit a question of your own — click here.

In the U.K., the investment company which manages iShares’ ETF’s is based in Ireland and (apparently) investors are not protected under U.K. regulation if iShares went bust. Are Canadian investors in iShares ETFs protected, and if so, to what level? —Pete Notter

Warren Mackenzie and Ken Hawkins: iShares assets are held in a custodian account,  separate from the management company’s  assets, which is BlackRock Asset Management Canada Limited (“BlackRock”). If Blackrock goes bankrupt the underlying assets of a iShare unit are protected. The iShares can not go bankrupt, even if the management company does.

Next question: I’m 69 — should I put money from house sale in RRSP?

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