Transferring funds in-kind (Securities transfer)

Learn about In-Kind transfers and how to submit the request.

A Security Transfer will move the funds in kind, the request will be processed to maintain the model assigned to the account.

All In-Kind transfers will be done with a 50bps cash buffer

It is important to note that not all In-Kind transfers will maintain the Adjusted Cost Base (ACB) of the security, some In-Kind transfers will be considered a Deemed Disposition.

Permitted Transfers between your accounts

Between non-registered accounts,

When you transfer an asset such as a security between your non-registered accounts, the transfer is generally not a disposition for tax purposes, so there are no immediate tax consequences.

From a non-registered account to a registered account

In some cases, you may want to transfer a security in-kind from your non-registered account to a registered account of which you are a beneficiary.

Assets in a Gain Position

If you transfer a security with an unrealized gain from your non-registered account to a registered account, you will realize a capital gain on the transfer. You will need to report the capital gain on your personal income tax return in the year of transfer.

Assets in a Loss Position

There may be adverse tax consequences if you transfer a security with an unrealized loss from your non-registered account to a registered account. The capital loss is generally denied and you cannot use the loss to offset any other capital gain.

From a registered account to a non-registered account

At Optimize, we only permit this type of Request for TFSAs. This withdrawal type is considered a deemed disposition.

To your spouse

You can generally transfer capital property to your spouse with no immediate tax consequences. This is because the default tax treatment for transfers between spouses is a rollover, which is also known as a spousal rollover. Essentially, the Adjusted Cost Base (ACB) of your security will roll over to your spouse so that your spouse inherits the same ACB of the security. For the rollover to apply, both you and your spouse must be residents of Canada at the time of the transfer.

To A Third Party

Any transfer of capital to a third party is considered a deemed disposition.

How to Submit the request for In-Kind transfers

Search for client contact in the HubSpot Search bar, open the client contact card, and find the client’s CRM Contact record page.

Start by navigating into the Servicing (Service Request) tab from the client's contact record, which is found in the middle panel of the contact record.

Then click on Cash and Security Management.

Step 1:

Select Transfer or Third Party Transfer.

Step 2:

Choose Securities Transfer

Step 3:

Select the from account

If a from account is denoted as "Cannot Be Processed" this means that there is no eligible account that can receive a securities transfers from the specified account.

Step 4:

Select the To account

Step 5:

Specify the Amount Type and Source of funds.
Amount types: Full or Partial?
Source of funds: Model or All?

Step 6:

Review the request and confirm all the details.
Enter the Dollar Amount to be transferred
Press submit

If the request is a contribution from the client's non-registered account to a registered account. The contribution type (In-Kind or In-Cash) will automatically be calculated by our system which analyzes the accounts holdings, model, and cash balance to decide the most optimal contribution type.

For more account-specific requests please read these articles.

The request will be completed in 4 Business Days