New T+1 Trade Settlement Cycle – LOI Requests

As announced in the May 23, 2024 communication, we would like to remind you that the trade settlement cycle changed from T+2 to T+1 effective May 27, 2024.

Since this change, our Letter of Indemnity (“LOI”) team has noticed the following issues in trade processing, both resulting in increased volumes of LOI requests.

• Representatives are processing purchase trades with money belonging to the TIN (inbound transfer) side of the transaction instead of letting the TOT (outbound transfer)/TIN settle as per the new settlement process cycle. In other words, the purchase is placed when the TIN is still in pending status, which results in duplicating the trade and a negative cash control account balance for the client.
  
  
• Representatives are also placing trades using the proceeds of the “MASFEE” transaction that was processed to cover F series fees, before the fee withdrawal (MGF) is completed, also causing a negative cash control account balance for the client.
  
  

To avoid these issues, we ask that you please check the available balance under the client’s cash control account, as well as the actual balance, when trades are being placed for that referenced plan before proceeding with the investments. For cases which resulted in a negative cash balance, please ensure that you submit a LOI application in a timely manner once you have received the notification from head office. 

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.