Due to this provision, funds inv
ested in Registered Pension Plans (RPPs) are exempt from seizure in bankruptcy by virtue of provincial and federal pension benefits legislation (39) Registered Retirement Savings
Plans (RRSPs) in the form of a contract with an insurance company and where a spouse, child, parent, grandparent, or grandchild of the
plan owner is named as a beneficiary are exempt from seizure on bankruptcy under laws governing insurance (40) Locked-in RRSPs holding money that was transferred from a pension
plan on termination of employment afte
...[+++]r pension rights have vested are exempt from seizure on bankruptcy under pension legislation (41) By contrast, RRSPs held by banks, brokerages, or mutual funds, or in self-directed RRSP accounts, are not exempt from seizure in the event of bankruptcy (42) These RRSPs vest in the trustee in bankruptcy on the bankruptcy of the plan owner.