Compliance Memo

CM_2020-03; Updated Limited Trading Authorization

For more information, contact:

Compliance Team
compliance@gpwealth.ca

Date Issued:

December 30, 2020

The Investment Funds Institute of Canada (“IFIC”) recently made revisions to its Limited Trading Authorization (“LTA”) Form and the IFIC Guidelines for Use of Limited Trading Authorization.

The new LTA provides the authorization to transact for Individual and Joint Accounts the following additional options:

  • “in-cash transfers”
  • “systematic switching plans” (“SSPs”)

Please note the use of the LTA is for individual or joint ‘client name’ mutual fund accounts only.  An LTA is not valid for entity 'client name' mutual fund accounts.

An existing LTA on file for an account holder remains valid however the use any of these additional options will require the new LTA Form be signed by the account holder.

Don’t forget that an electronically signed LTA by a client and advisor is valid.

Important Information

An LTA cannot be used to convey non-financial changes in respect of the plans (accounts) of an account holder. For example, an address change or banking information change requires written authority by signature from the account holder.

For additional information please refer to, MFDA Bulletin #0773-P, which also includes the IFIC Guidelines for the use of a Limited Trading Authorization Form.

An updated pre-fillable GP Wealth LTA can be downloaded by going to the “Backoffice” tab from your secured access and clicking on “Apps & Forms”.

As always, if you have questions or comments, contact the Compliance Department by email at compliance@gpwealth.ca.