Change to Preauthorized Debit Agreements and Amendment to CPA Rule H1 – Clarification

As a follow-up to the December 14, 2023 communication which highlights the recent amendments made to pre-authorized debit agreements (PADs) under CPA Rule H1 (read memo here), we thought it would be helpful to provide clarification in response to some questions recently received from advisors.

As a reminder, effective January 1, 2024, all clients are required to sign a new agreement when they want to set up a sporadic PAD (which is the equivalent of a one-time PAC). For subsequent sporadic PADs, there is no need to have the client sign the form again, only to document the instructions, as usual. Note that this applies to both nominee and client-name accounts. 

Important clarification

• Rule H1 has been updated on each of the following Investia forms (January 2024 versions):

1. 1. Systematic Purchase Form;
   2. New Client Account Application Form (client-name, nominee, TFSA accounts);
   3. KYC Update Form.

• Once the client has signed the January 2024 version of any of these forms, he or she attests to the new rule. For future requests, you may choose to ask for the client’s signature, or, alternatively, document the instruction in the client’s file, by means of a note in Univeris under the “Communications” section. 
  
  
• The client’s signature on one of these forms (January 2024 versions) is valid for ALL the client’s nominee accounts, not just one.
  
  
• For client-name accounts, it is your responsibility to validate the requirements with each fund company.
  
  
• Please note that the client’s signature is still required for any changes to the client’s banking information.

As a reminder, below are examples of situations where the client’s signature is required on the forms where Rule H1 has been updated (January 2024 versions):

Should you have any questions or require additional information, 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.