Operations Memo

OM_2020-01; Recurring Pre-Authorized Contribution (PAC) Minimum Amount Policy

For more information, contact:

Advisor Services Team

Date Issued:

February 23, 2021

A recurring Pre-Authorized Contribution (PAC) is one of the convenient ways for a client to invest automatically to achieve their savings goals.

Our policy when setting up, changing, or stopping a PAC is to process the request electronically using the NFU system in W.connect. There are several benefits of sending the PAC request electronically including receiving instant confirmation that the request has been processed, having a record on the system of the PAC when reporting on an account statement and eliminating faxing a PAC request.

As you may know, each fund company states a minimum PAC deposit amount per fund (typically $25-$50) per contribution frequency. If the amount of the deposit is below the minimum for a particular fund, the NFU system will reject the request as displayed in the screenshot below because the system is setup to adhere to a fund company's minimum investment amount, as recorded in the prospectus or fund facts documents.

Part of the rationale to adhere to a minimum PAC deposit is to promote a straight through processing system that simplifies the procedure to reduce costs over time.

Starting March 15, 2021, GP Wealth Management will be adhering to the minimum PAC deposit amount per fund per contribution frequency.

Important Information:

An existing PAC below the minimum amount will remain active however any future changes to the PAC must adhere to the current minimums.

As always, if you have questions or comments or need help with processing a PAC, contact the Advisor Services Department by email at advisorservices@gpwealth.ca.