To minimize LOIs and streamline the process for you, we have updated Administrative Procedure # 37 – Returned Item, along with the replacement options outlined in the Returned Items Notice you receive in the event of insufficient funds.

These modifications address a recurring trend we have observed, where purchases are often placed a second time in an effort to reimburse the NSF. It is important to note that, unlike fund companies, Investia does not cancel trades until the compensation delay has expired. 

We have also noted that while some replacement cheques are received within the compensation delay, they are not obtained or “matched” by the Trust Account team in a timely manner. This results in LOIs that could have been avoided.

Here are NSF replacement methods (outlined in the procedure) which are specific to each type of plan:

Nominee accounts
NSFs will result in the reversal of the initial deposit (DEP), leading to a negative cash account balance. To address this, a new deposit (DEP) must be made into the cash account. This can be achieved by:

• Asking your client to deposit funds into their cash account via bill payment through their online banking platform.
  
  
• Setting up a client electronic funds transfer (EFT) deposit into the plan’s cash account via OrderXPRESS.
  
  
• Obtaining a new cheque from your client and processing it as a client cheque deposit. The deposit report and bank proof must be uploaded or faxed to the Trust Account team.

Client-name accounts
Since client-name plans have no cash control accounts, any negative balance will appear in the plan’s trust account, and no deposits can be made directly in the plan. The following alternatives are available:

• In your client’s SDOPEN account, use the digital solutions mentioned above (EFT, bill payment). If needed, a temporary CASH ONLY SDOPEN account can be created for this purpose. The Trust Account team will use the sums available to compensate for the negative trust balance.
  
  
• If using a replacement cheque, make the deposit at the bank and submit the proof (i.e., deposit slip, ATM receipt) to the Trust Account team along with the NSF notice.