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Cash and Security Management Requests FAQ Topics
Add Fund Requests
Am I able to have a Registered Retirement Savings Plan (RRSP) or Spousal RRSP contribution backdated?
Yes, in certain cases, contributions can be applied to the previous tax year. Please contact your Portfolio Manager if you believe this may be applicable to your situation.
I accidentally designated a contribution as a Spousal Contribution instead of a Regular Contribution. How do I correct this?
For guidance on submitting Cancel/Correction requests, please refer to this article.
I accidentally designated a contribution as a Regular Contribution instead of a Spousal Contribution. How do I correct this?
For guidance on submitting Cancel/Correction requests, please refer to this article.
Is it possible for a client to make a contribution to their account by cheque?
Clients can contribute to their investment accounts by mailing a physical cheque to:
National Bank Independent Network
130 King Street West, Suite 2800
Toronto, ON, M5X 1J9
Attention: Securities Management
To ensure the funds are deposited into the correct account, the receiving account number must be clearly indicated on the memo line of the cheque. Please note that cheque contributions can not be submitted through the Servicing (Service Request) extension on the CRM and, as a result, can not be tracked through our internal systems and pipelines. We strongly recommend using one of the electronic contribution methods available through the Servicing extension, and reserving cheque contributions for situations where electronic options are not available.
How do I re-initiate a transfer?
To reinitiate a transfer, please refer to this article for step-by-step guidance. You’ll need to submit a new request using the Servicing extension on the CRM. From there, select "Cash and Security Management Requests", then "Add Funds", followed by "Initiate a Transfer". Be sure to provide all necessary details to ensure accurate and timely processing.
A transfer request has been rejected because the funds are being held in the client's name. What does that mean?
This typically occurs when the client's account is registered under a nominee or self-directed registration rather than directly in the client’s name. In such cases, the relinquishing institution may reject the transfer request, as they are unable to verify the authorization if the Transfer Forms do not match the registration name on record.
How often does the transfer team follow up with the relinquishing institution on the status of a transfer?
Our dedicated Money Movement team monitors the status of transfer requests on a daily basis to ensure timely processing and address any issues that may arise.
What is the difference between a New Client and Existing Client transfer request?
For New Client transfer requests, the required documentation is obtained from the recently completed account opening forms. In contrast, for Existing Client transfer requests, you already have access to the necessary transfer documents, as the client's account is already established within the system.
Does Optimize charge client's for Non-sufficient Funds (NSF)?
Optimize does not charge clients for contribution attempts that are cancelled due to insufficient funds.
Are physical share certificates accepted?
Physical share certificates are accepted only in select cases. Please contact your Portfolio Manager to determine if your situation qualifies.
What should I do if the relinquishing institution is not listed in the dropdown when submitting a transfer request?
If the relinquishing institution does not appear in the dropdown menu, please select "Other" and manually enter the institution’s details. For further guidance, refer to the article regarding initiating a transfer from an external institution.
How do I cancel an Add Funds request?
To request a cancellation, please e-mail service@optimize.ca on the same business day the request was submitted. While we will make every effort to accommodate the cancellation, please note that it can not be guaranteed.
My client received dividends at the relinquishing institution after the funds were transferred to Optimize. How do I transfer the remaining dividends?
To transfer the remaining dividends, you’ll need to submit a new request using the Servicing extension on the CRM. From there, select "Cash and Security Management Requests", then "Add Funds", followed by "Initiate a Transfer". Be sure to provide all necessary details to ensure accurate and timely processing
Withdraw Requests
How do I submit a withdrawal request for a specific holding?
Withdrawals from specific holdings are not permitted for Optimize model portfolio positions. However, for non-core holdings, please contact your Portfolio Manager. They will initiate a request to sell the non-core security. Once the trade has been executed and the settlement is complete, a withdrawal request for an amount up to the net proceeds of the sale must be submitted within 7 business days of settlement. If the withdrawal request is not submitted within this timeframe, the proceeds will be automatically re-invested into the model portfolio.
What is an offset account?
An offset account is a CAD or USD non-registered account used to facilitate Electronic Fund Transfers (EFTs) withdrawals from registered accounts. Since EFTs can not be processed directly from registered accounts, the funds must first be de-registered and withdrawn to the offset account. From there, the funds can be issued to the client.
Why do I need banking set up on an offset account when withdrawing from registered accounts?
When withdrawing funds from a registered account, the funds must first be transferred to a non-registered offset account, as EFTs can not be processed directly from a registered account. The funds are then issued from the offset account using the banking details linked to it. Therefore, banking information must be set up on the offset account to complete the withdrawal process.
Are we able to withdraw funds as a wire transfer?
Withdrawals as a wire transfer are not available, please refer to this article to learn about the different withdrawal methods and the withdrawal pipeline.
How can I move money from a registered account to a non-registered account?
To withdraw funds from a registered account to a non-registered account, please refer to this article for step-by-step instructions on how to complete the withdrawal process.
Can I specify withholding tax when withdrawing from a Registered Retirement Income Fund (RIF)?
Yes, you may request additional withholding tax to be applied to your withdrawal. However, you can not request a withholding amount lower than the minimum rates prescribed by the CRA, as outlined below.
How can I see the details of a withdrawal request that I submitted?
To view the details of a submitted withdrawal request, please refer to this article for more information on how to track and review requests within the pipeline.
I accidentally rolled over my clients Registered Retirement Savings Plan (RSP) / Spousal RSP into a RIF / Spousal RIF. How do I reverse this?
To request a reversal, please refer to this article for guidance on how to submit a rollback request.
Why does it take longer when withdrawing funds from the Model Portfolio?
Withdrawals from Optimize funds require a sell. Sell orders are processed every Friday and settle the following Thursday. Once the trade has settled, the withdrawal is processed. Our service standard is as follows: if the request is submitted between a Friday and the following Thursday, the funds will be sold and deposited into the client’s bank account within three business days after the settlement date (Thursday).
Are withdrawals from a Registered Education Savings Plan (RESP) account taxable?
It depends on the type of withdrawal:
- Post-Secondary Education (PSE) Withdrawals: These are non-taxable returns of the original contributions made to the RESP.
- Educational Assistance Payments (EAP): These consist of government grants (federal and applicable provincial), the Canada Learning Bond (CLB), and any investment income earned on the contributions and grants. EAP amounts are taxable in the hands of the student beneficiary of the RESP.
Are withdrawals from a RIF / Life Income Fund (LIF) account taxable, and how is the withholding tax calculated on RIF / Spousal RIF / LIF withdrawals?
Payments made from the minimum required amount may be exempt from withholding tax. While no tax is withheld at the time of the withdrawal, the amount is still considered taxable income and must be reported when filing the client's tax return. All other payments are subject to withholding tax in accordance with the rates outlined in the table below.
Are withdrawals from a FHSA account taxable, and how is the withholding tax calculated on taxable FHSA withdrawals?
A withdrawal from your First Home Savings Account (FHSA) is not required to be included in your income if it is a qualifying withdrawal, a designated amount, or an amount otherwise included in your income.
In all other cases, an amount withdrawn from your FHSAs must be included as income on your income tax and benefit return for the year the withdrawal is received. This amount will be subject to income tax withholding, which can be claimed on your income tax and benefit return as a credit towards any tax owing for the year of the withdrawal.
If you have an excess FHSA amount, one of the ways that you can reduce or eliminate it is to make a taxable withdrawal.
Are withdrawals from a RSP / Spousal RSP account taxable, and how is the withholding tax calculated on RSP / Spousal RSP withdrawals?
Yes, cash withdrawals from a Registered Retirement Savings Plan (RRSP) or Spousal RRSP are considered taxable income and are subject to withholding tax at the time of withdrawal. A T4RSP slip will be issued to report the withdrawn amount as income on your tax return.
However, withdrawals made under the Home Buyers' Plan (HBP) or Lifelong Learning Plan (LLP) are not subject to immediate taxation, provided they meet the specific program criteria.
Are withdrawals from a TFSA taxable?
No, withdrawals from a Tax-Free Savings Account (TFSA) are not taxable. You can generally withdraw any amount at any time, depending on the type of investment held within the account, and the withdrawn funds are not included in your taxable income.
A payment to my client’s bank account bounced. Where are the funds redirected?
If the withdrawal originated from a registered account, the funds will be redirected to the associated offset account. If the withdrawal was from a non-registered account, the funds will be returned to the same non-registered account.
What is considered valid Proof of Enrolment when withdrawing from a RESP account?
The document must include the following mandatory information to be considered valid: the name of the post-secondary educational institution, the name of the beneficiary, the semester, and the student’s status (full-time or part-time). It is valid for six months following the end of the specified semester.
The document must be an official record issued by the post-secondary educational institution. Ideally, all required information should appear on a single document. However, if multiple documents are submitted, the student’s full name or alphanumeric student ID must appear on each document to clearly link them together.
Acceptable documents, whether provided in paper or digital format, include a confirmation of registration issued by the Registrar, an official invoice from the educational institution, or a course schedule that meets the above criteria.
Documents that are not acceptable include acceptance letters, admission offers, and emails, as they do not confirm active enrolment or student status for the specified semester.
Why are there still funds remaining in an RESP account after I submitted a full withdrawal?
Any remaining funds in the RESP account are likely amounts that are ineligible for withdrawal, such as unused government grants that must be returned. To determine what remains in the account, you can view the detailed breakdown of RESP components on our CRM.
How do I cancel a withdrawal request?
To request a cancellation, please contact service@optimize.ca as soon as possible. While we will make every effort to accommodate the request, please note that cancellation is not guaranteed.
Why can't I submit a request to withdraw funds in-kind from an RSP, Spousal RSP, RIF, or LIF to a related non-registered account?
Withdrawals from these registered accounts are subject to withholding tax, which must be withheld in cash at the time of withdrawal. Because withholding tax cannot be deducted from in-kind securities, in-kind withdrawals from these account types are not permitted.
What is the RRSP administration fee?
A standard $28.25 administration fee applies to all RRSP withdrawals, regardless of the withdrawal amount. When submitting a withdrawal request, you can choose how this fee is applied:
- Included: The fee is deducted from the gross withdrawal amount, which reduces the total taxable amount reported.
- Excluded: The fee is deducted separately from the account’s cash balance, leaving the full gross withdrawal amount unaffected for tax purposes.
Do I need to submit multiple withdrawal tickets to Settle an Estate with Multiple Beneficiaries?
No, only one withdrawal request is required per account, not per beneficiary. The Optimize Letter of Direction (LOD) must be completed and attached to the request, as it allows for the designation of multiple beneficiaries and outlines how the withdrawal should be allocated among them.
Transfer Requests
How do I move money from a TFSA to an RSP account?
You can not directly move funds from a Tax-Free Savings Account (TFSA) to a Registered Retirement Savings Plan (RRSP). First, you must submit a "Withdrawal to Investment Account" request, which will withdraw the funds from the TFSA to the associated non-registered investment account. Once that request is completed and the funds have settled, you can submit a request to contribute to the RRSP from the non-registered account by using the "Contribute to Investment Account" Add Funds request.
I accidentally transferred my client's Spousal RSP into their RSP. How do I correct this?
For guidance on submitting Cancel/Correction requests, please refer to this article.
How do I cancel a transfer request?
To cancel a request, please e-mail service@optimize.ca. Please note that while we will make every effort to accommodate your cancellation, it can not be guaranteed.
Why can't I submit a request to transfer funds from a registered investment account (RSP, Spousal RIF, RIF, LIF, RESP, TFSA, FHSA, etc.) to a related non-registered account?
Transfers from registered accounts to non-registered accounts are considered withdrawals, not internal transfers. Please refer to this article for guidance on how to properly submit a withdrawal request from a registered account to a related non-registered account.