Letters of Indemnity – Important Reminders and Considerations

Please find below some key reminders regarding letters of indemnity (“LOIs”).

1. Complete all sections: Ensure all five sections of the LOI application form are filled out, even for non-financial corrections. Missing or incorrect information may cause delays or invalid corrections. Missing or incorrect information may cause delays or invalid corrections. The LOI application completed with all sections and appropriate signatures must be sent for processing to Investia Head Office (and not send directly to the fund companies as it will be rejected).
   
   
2. Provide clear instructions: include clear and concise instructions on the LOI application for the trade(s) to be corrected. 
   
   
3. Signatures required: The client’s signature, when applicable, along with the Representative’s, must be included on the LOI application. For client-name accounts without a valid Limited Authorization Form (“LAF”) on file, the client’s signature is required. For clients with a valid LAF on file and for nominee accounts, valid notes must be maintained and provided upon request.
   
   
4. Transmission of supporting documentation: Provide proof of intent/supporting documents with the LOI application to support the requested correction. Upon submission, mark the documentation (proof of intent) with the note “with LOI request” to avoid trade duplications.
   
   
5. Asset transfers in kind: Assets can be transferred between plans/clients either “in cash” or “in kind”, however the goal is to place these as in kind. If the option is not correctly selected in Univeris, funds will be traded as redemptions instead of transfers in kind. 
   
   
    
6. Reversals of redemptions: If a redemption needs to be reversed (i.e., when withdrawals send the proceeds to the client’s bank account), the LOI team will require the proceeds (the money) to be sent back to Investia before proceeding with the correction. Options for sending back proceeds include: 
   
   •    The client can send the money via EFT/online deposit; or
   
   •    The Representative can program a one-time PAC to the cash account. If the client does not hold a nominee open account, one can be opened for cash account purposes to facilitate the one-time PAC to CCA, without the need for a KYC in this instance.
   
   
7. Cost of corrections: LOI corrections may incur a cost (dilution), which will be deducted from the Representative’s commission account. Head office will not estimate potential LOI dilutions. 
   
   
8. Error liability: Do not submit requests indicating head office is responsible for the error without confirmation from head office. If there are concerns or questions about error liability, please contact Client Services before submitting the LOI request. 
   
   
9. Processing time: All requests received by 2:00 p.m. EST will be processed on the same business day on a best-effort basis, provided the request is in good order.
   
   

Important considerations

• To avoid issues, please remember to check both the available balance under the client’s cash control account (“CCA”), as well as the actual balance, when placing trades for the referenced plan before proceeding with the investments. For cases resulting in a negative CCA balance, please ensure that you submit a LOI application for processing in a timely manner once you receive notification from head office.
  
  
• Representatives should not process 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, placing the purchase when the TIN is still in pending status will result in trade duplication and a negative CCA balance for the client.
  
  
• Representatives should not place trades using the proceeds of the fee-based (“MASFEE”) transaction that was processed to cover fee-based fees before the fee withdrawal is completed, as this will also result a negative CCA balance for the client.
  
  
• For Representatives processing a deposit via one-time PAC to cover the original PAC trade that went NSF, as notified by head office, please ensure that the deposit is processed as a one-time PAC into the CCA to avoid trade duplication. 
  
  

Should you require additional information, please contact our Client Services Team, by email at investia@investia.ca , by phone at 1-888-684-5548 or via the chatbot feature on the Advisor Centre.