THE 360 NEWSLETTER

Reminder – RRSP to RRIF Transfers

Best practices October 19, 2023
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Following the September 21, 2023 communication, we would like to remind you that holders of a nominee RRSP or LIRA/locked-in RRSP who will have reached age 71 by December 31, 2023 must transfer their account to a RRIF or LIF before year end.

Nominee RRSP to RRIF Transfers
Please be reminded that processing of these transfers must be finalized in Univeris by November 24, 2023 for all your impacted clients to ensure timely processing of your transfers.

As mentioned in Administrative Procedure # 51 – Internal Transfers in Cash or in Kind Between Two Investia Nominee Accounts, transfers can be processed in kind and in cash for mutual funds, segregated funds and available cash account balances. We would like to remind you that all transfers must be processed by the Representative.

For this purpose, please upload the following documents/information to Investia (“Imaging” option*):

  • Investia Nominee Account Application Form (mandatory) signed by the client;
  • Order Instruction Form or Internal Transfer Form (Investia Nominee Accounts) with account transfer instructions (e.g., RRSP/LIRA #123 to RRIF/LIF #345);
  • Nominee Fee-Based Account Program Agreement (F51-335A), if applicable, for the new account;
  • New Beneficiary Change Form (F51-370A) or complete the beneficiary designation section on the NCAF completed for the new plan; and
  • New Order Instruction Form for Systematic Withdrawals (Investia Nominee Accounts) (F51-326A) for the payment of the minimum amount for 2024.

*Unless special instructions apply, in which case please send your special instructions to Head Office for processing (“Processing” option in the Secure File Upload Tool on the Advisor Centre).

Nominee LIRA or Locked-in RRSP to a Nominee LIF Transfers
For locked-in RRSPs/LIRAs, please transfer the account to a nominee LIF while ensuring that the legislation remains the same. Once again, please ensure that your transfers have been entered in Univeris by November 24 to ensure timely processing.

Please note that the only transfers which cannot be processed within your office are those for GICs, WVN Funds, Covington Funds (or funds with a market value at 0), exchange traded funds (“ETF”) and US cash available in the cash account. These transfers must be made by Investia Head Office. We will begin processing these types of transfers starting October 30. Please fax or upload the instruction form and account application form (if applicable) to Investia so that your clients’ files meet compliance requirements.

Common Issues Encountered when Processing Transfers

RRIF/LIF plan not opened

Create the plan and obtain the nominee NCAF signed by the client.

Important note: For outside Quebec clients only, it is important to complete Section 6 of the form (Beneficiary/Successor Annuitant Information) because when the estate is settled, the beneficiary information must be the same as that indicated on the RRIF or LIF account application form. It is clearly stated by the various government bodies that we cannot take for granted what was indicated on the RRSP account application form prior to the transfer. The only possible exception is in the event of the client's incapacity, in which case the RRSP beneficiary designation will apply.

KYC not updated (stale dated)

Obtain a KYC Update Form and update the KYC in Univeris.

GIC/ETF/WVN/U$ cash available

Transfer all other positions and submit a request to Head Office to transfer these positions.

Fee-based accounts

For nominee RRIF/LIF accounts, do not forget to set up the account in PureFees/Univeris. Then, send your Nominee Fee-Based Account Program Agreement to Head Office for imaging. If the new agreement is not in the client’s file by the end of January 2024, we will discontinue the payment.

Reminders and Good Business Practices

For nominee RRIFs or LIFs containing only GICs

In order to prevent GICs from being sold to pay the RRIF of LIF minimum amount, as outlined in our procedures, we remind you to ensure that another redeemable fund is available (e.g., iA Clarington money market funds, HISA funds, etc.) to ensure payment of the minimum amount while ensuring that penalties associated with redeeming the GIC are not incurred.

Transfer from nominee LIRA/LRSP to nominee LIF

Ensure that the legislation is the same between the nominee LIRA and the LIF.

Ensure the banking information is on file

To facilitate scheduled payments to the client, please ensure up-to-date banking information is on file. As mentioned in the March 30, 2023 communication, it is mandatory for banking information to be entered in the system either by the client via the Client Portal or by the Representative in Univeris.

Temporary income

If the LIF legislation allows for a temporary income and your client wishes to take advantage of this provision, please remember to send the appropriate riders to Head Office as they are required each year.

Incorrect address

If your client’s address is incorrect, please update the address and do not forget to uncheck the “Incorrect Address” box in Univeris. Also, please verify that the residency code is also updated if needed.

AWD setup for 2024 in a new nominee RRIF/LIF

To enable the payment of the minimum amount for 2024, do not forget to send an Order Instruction Form for Systematic Withdrawals (Investia Nominee Accounts) (F51-326A) to Head Office for the payment of the minimum amount for 2024.

In order to assist you with preparing for year end, a list of impacted clients is available in Univeris under Reports / Administration / Registered Plans / RRSP Age Limit (in the “Designation” drop-down menu of the selection criteria, you will have to select “Broker/Nominee”).

For more details, we invite you to refer to Administrative Procedure # 51 available on the Advisor Centre under Procedures and Forms / Administrative Procedures.

Should you have any questions, please contact our Client Services Team, by email at investia@investia.ca, by phone at 1-888-684-5548, or use the chatbot feature available on the Advisor Centre.

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