Overview of Specialized Withdrawals & Unlocking Requests

What Are Specialized Withdrawals & Unlocking Requests?

Specialized withdrawal and unlocking requests allow Advisors and Portfolio Managers to help clients access funds under specific programs or legislative exceptions. These requests are typically used in cases involving government withdrawal programs, charitable donations, or unlocking pension accounts due to specific life circumstances. Accurate and timely processing of these requests ensures compliance with legislation while supporting client financial goals or urgent needs.

To access and track these requests, navigate to the ticket index page in the CRM by selecting CRM > Tickets, then click the pipeline dropdown menu and select Account Administration.

Types of Specialized Withdrawal & Unlocking Requests

• Charitable Donation of Securities: Used to process in-kind donations of securities to registered charities. This request allows clients to donate appreciated securities directly from their investment account, often resulting in favorable tax treatment while supporting philanthropic goals.
• Home Buyers’ Plan (HBP) Withdrawals: This request allows clients to withdraw funds from a RRSP or Spousal RRSP under the Home Buyers’ Plan. It enables eligible first-time homebuyers to use RRSP savings for the purchase of a home without immediate tax consequences.
• Lifelong Learning Plan (LLP) Withdrawals: Used to withdraw funds from a RRSP or Spousal RRSP under the Lifelong Learning Plan. It supports clients returning to full-time education by allowing temporary use of retirement savings for educational expenses.
• Updating Account Legislation: This request is used to update the legislation governing a registered plan. It is often required when a client changes residency or needs to align their account with applicable provincial rules.
• 50% Unlocking (Alberta): Used for Alberta residents who are eligible to unlock up to 50% of funds from certain locked-in retirement accounts. This request must meet specific provincial criteria and includes the option to transfer unlocked amounts to a non-locked-in account.
• 50% Unlocking (Non-Alberta): This request is similar to the Alberta unlocking option but applies to clients residing in other provinces with similar unlocking provisions. Provincial legislation determines eligibility and processing rules.
• Other Special Unlocking (Hardship, Shortened Life Expectancy): Used for unlocking requests that fall under special provisions such as financial hardship, shortened life expectancy, or small balance exemptions. Proper documentation and provincial eligibility criteria must be met to process these requests.

Why Are These Requests Important?

Specialized withdrawals and unlocking requests help clients access their funds during significant life events, emergencies, or for tax-advantaged purposes. Managing these requests accurately ensures compliance with federal and provincial regulations while providing meaningful financial flexibility for clients.

Key Benefits of Managing Specialized Withdrawals & Unlocking Requests:

• Client Support in Key Moments: Enables clients to access their funds during home purchases, education, charitable giving, or personal emergencies.
• Regulatory Compliance: Ensures withdrawals and unlocking follow the rules set out in the applicable legislation.
• Tax Efficiency: Supports planning strategies that minimize tax liabilities through structured programs.
• Accurate Record-Keeping: Maintains clear documentation and account history for audit and reporting purposes.