TORONTO, May 26, 2026 /CNW/ – The Canadian Forum for Financial Markets (CFFiM)/Forum Canadien des Marchés Financiers (FCMFi) is dedicated to advancing proposals that foster healthy, competitive financial markets for a strong, resilient Canadian economy.

In its submission to the House of Commons Finance Committee’s pre-budget consultations, CFFiM made the following recommendations to drive growth and competitiveness:

Through Tax Reform:

Generally

• Rebalance the tax mix toward consumption taxes.
• Cut the statutory corporate income tax rate by 1 percentage point in 2027 and another point in 2028.
• Compress the five personal income tax brackets into three.
• Increase the GST rate by 1 percentage point in 2027 and another point in 2028.

Capital Markets

• Expand the mining flow-through share regime to include preliminary economic, pre- feasibility, and feasibility studies as eligible Canadian Exploration Expenses.
• Expand flow-through share eligibility to qualifying R&D expenditures in innovative sectors and integration with the Scientific Research and Experimental Development (SR&ED) tax incentive program.
• Consider tax free corporate spinoffs akin to s. 355 of the U.S. Internal Revenue Code.

Through Legislative and Regulatory Reform:

Banking

• Conduct a public review of banking regulations to eliminate unnecessary requirements.
• Amend legislative mandates to include competition.
• Designate a technical standards body by Q3, 2026 to accelerate open banking.

Capital Markets

• Examine a modernized income trust structure for mature, cash-generating businesses with limited reinvestment needs.
• Introduce a UK-style Enterprise Investment Scheme (EIS) to stimulate investment in early-stage, unlisted businesses with high growth potential.
• Reduce overlapping and duplicative financial market regulation and regulators.

Through Improved Tax-Assisted Retirement Savings:

• Raise the RRSP-to-RRIF conversion age from 71 to 74.
• Reduce, and ultimately eliminate, mandatory RRIF withdrawal rates.
• Increase the defined contribution pension plan and RRSP contribution limit to 30% of earned income.
• Expand qualified investments in registered savings plans to include private capital funds.

With Fiscal Credibility:

• Re-establish the debt-to-GDP ratio as the fiscal anchor, with a clear medium-term path back to pre-pandemic levels.

“These are practical, pro-growth recommendations that raise living standards and keep Canada competitive,” said Laura Paglia, CFFiM President & CEO. “A competitive Canada brings better jobs, lower prices, more choice, faster innovation and fairer outcomes.”

Read the CFFiM’s full submission online.