THE 360 NEWSLETTER

We would like to inform you that changes will be made to our automatic withdrawal deposit (AWD) process for nominee AWDs that do not reach the minimum amount prescribed by law.

These changes will help us meet our dealer requirement to ensure that the minimum amount is always paid to each client before the end of a given year. This initiative will help avoid lump-sum redemptions that we process each year at the beginning of December to ensure the the balance of minimum amounts is paid to clients. Below is a summary of the upcoming changes:

July 1, 2021  – Automatic adjustment of new AWDs that do not reach the minimum amount

Effective Thursday, July 1, 2021, for all new AWD setup requests that we receive for which the total AWD amount is under the minimum amount set up for the plan, we will automatically adjust the AWD amount so that it reaches the minimum amount. In other words, effective July 1, we will no longer accept requests to set up AWDs that are under the minimum annual amount prescribed by law.

January 1, 2022 – Automatic adjustment of all AWDs that do not reach the minimum amount

As a second step in this process, effective January 1, 2022, all client AWDs that do not reach the minimum amount will automatically be adjusted to the minimum amount.

To support you with this change, we will be sending you, in the upcoming months, a list of all your clients with AWDs under the minimum amount so that you can contact them, before January 1, to let them know that their AWDs for 2022 will be adjusted to reflect the required minimum amount and that instalments will be adjusted accordingly based on to the desired frequency.

Best Practice

As a best business practice, we strongly recommend, upon opening a RRIF or a LIF, that you immediately set up systematic withdrawals that reach the minimum (or a higher) amount to avoid follow-ups with the client to ensure they receive the proper amount.

Administrative Procedure

For your information, Administrative Procedure #34A has been recently updated. We invite you to read the amended procedure from the link below, also available on the Advisor Centre under Procedures & Forms / Administrative Procedures:

Administrative Procedure #34A – Automatic Withdrawal Deposits (AWD) – Investia Nominee Accounts

We hope this initiative will make things easier for you.

Should you require additional information, please contact our Client Service Department, by email at investia@investia.ca or by phone at 1-888-684-5548.