Account Opening | Frequently Asked Questions FAQs

Personal Accounts

(Personal refers to all Individuals, Joint, and In Trust For (ITF) minor client types.)

What is the maximum number of individuals allowed on a joint account?

Up to four individuals may be part of a joint account application. Each individual must be associated with the New Account Application ticket, and each individual is required to sign the paperwork as part of the onboarding and account opening process.

Can I add or remove an account holder from an existing account?

No, a new account must be opened.

Who is considered a non-resident of Canada?

Residency is determined based on individual circumstances.
Factors include:

Physical residence
Where their family resides (including spouse and dependents)
Social and economic ties (such as bank accounts)

Generally, a non-resident is:

An individual who resides outside of Canada for 183 days or more in a calendar year.
A legal entity incorporated or constituted outside of Canada.

For more information, refer to:

Residency of a Corporation (CRA)
Residence of a Trust or Estate (CRA)

Additional entities considered non-residents include:

Trusts or estates where any trustee or executor is a non-resident.
Partnerships where any partner is a non-resident.
Corporations or legal entities incorporated outside Canada.
Any existing NBIN client who moves to a jurisdiction outside of Canada.

Who is considered a US person?
A US person includes:

A citizen of the United States (regardless of residency).
A US resident for tax purposes, determined by meeting either:
- The green card test.

The substantial presence test

For more information, refer to:

Can a joint account be opened where one or more of the account holders is a non-resident of Canada?

No, joint accounts cannot be opened where any account holder is a non-resident of Canada. Residency drives tax reporting

How do I update a client's address for a change in residence within Canada?

Submit a service request to update the client’s address on the CRM Contact Record.
Include a Letter of Direction (LOD) signed by the client.

Do I need to open a new account if a client changes their country of residence?

Yes, a new account must be opened when a client changes their country of residence. You can submit a service request on the client’s CRM contact record to open a new account under a new root.

How do I add a Power of Attorney (POA) to an existing client account?

To add a POA:

A notarized copy or certified true copy of the legal POA document is required.
Submit a service request to add a POA for the client on their CRM contact record.

Can a POA open an individual account?

Yes, a POA may open an individual account. However:

A POA cannot designate a beneficiary on an RSP or TFSA.
Beneficiary designations are reviewed on a case-by-case basis.

Can a POA open a joint account?

No, a POA cannot sign for themselves and the donor in a joint agreement relationship.
Each account holder must sign for themselves to avoid any conflicts of interest.

Can a POA designate themselves as a beneficiary?

No, a POA cannot designate themselves as a beneficiary.

Can a client add a non-resident POA to the account?

Yes, a non-resident POA may be assigned, but a US-based POA on a Canadian account may result in the account being treated as a US resident account.

Can I add a beneficiary to an existing RESP?

Yes, if the existing RESP was opened as a Family Plan, a beneficiary can be added by submitting a RESP Beneficiary Designation request on the client’s CRM contact record.

Does the client's entity need to have its own bank account?

If the entity does not have a bank account, the account can still be opened. The signing authority’s bank account can be used instead.

Why do we need to provide income and net worth information for the entity when opening a new account?

Income and net worth information must always be included when opening a new entity account, in order to:

To comply with Know-Your-Client (KYC) regulatory requirements
For anti-money laundering (AML) purposes
To assess suitability when assigning the account a model

Why do I need to provide banking details when opening a new account?

You need to provide banking details to process contributions and withdrawals and to comply with Anti-Money Laundering (AML) regulations by ensuring that funds are being transferred to and from a legitimate bank account.

Why do I need to provide ID for a client when opening a new account?

Providing valid ID is required to meet our Know-Your-Client (KYC) and Anti-Money Laundering (AML) requirements, ensuring the client’s identity is verified and their risk profile is properly established.

Do I need to provide banking details for every account holder on a joint account?

Yes, banking details and a scanned copy of a void cheque are required for each account holder on a joint account to comply with AML regulations and verify all account holders.

Do I need to provide a spouse’s SIN when opening a new account if the spouse is not a client?

No, a spouse’s SIN is only required when opening spousal accounts, such as a Spousal RRSP or Spousal RIF, because contributions are attributed to the spouse for tax purposes.

Do I need to provide SIN numbers for beneficiaries when opening RESP accounts?

Yes, SINs for all beneficiaries are required when opening an RESP to register the plan with the CRA and ensure that government grants, such as the Canada Education Savings Grant, are applied correctly.

Do I need to provide SIN numbers for beneficiaries on RDSP accounts?

Yes, SINs for all beneficiaries are required when opening an RDSP to register the plan with the CRA and ensure that government grants and bonds are properly applied

Why do I have to provide my client’s former occupation if they’re retired?

A client’s former occupation is required for Know-Your-Client (KYC) and Anti-Money Laundering (AML) purposes to establish their financial profile and meet regulatory requirements.

Entity Accounts

Can an entity account be opened if the entity was incorporated outside Canada?

Yes, an entity account can be opened for an entity incorporated outside Canada.

Can an entity account be opened if one of the Signing Authorities (SAs) is a non-resident of Canada?

Yes, an entity account can be opened if one or more of the SAs is a non-resident of Canada, however trading restrictions may be applied.

What happens when the sole signing authority of an entity account is deceased?

If the sole Signing Authority (SA) passes away, you must provide us with:

A copy of the death certificate and a Letter of Direction (LOD) signed by the remaining SAs, in order to remove the deceased SA.

What is CRS?

The Common Reporting Standard (CRS) is an international information-gathering and reporting requirement for financial institutions in participating countries. It is designed to combat tax evasion by requiring certain entities to disclose information to the Canada Revenue Agency (CRA) about account holders who are residents for tax purposes in jurisdictions outside of Canada and the United States.

What is FATCA?

The Foreign Account Tax Compliance Act (FATCA) is a US law passed as part of the Hiring Incentives to Restore Employment Act (HIRE Act). FATCA requires foreign financial institutions and certain non-financial foreign entities to report on foreign assets held by US account holders or face withholding on applicable payments.