Transfers between Institutions InfoHi Kids,
Hope all have been well. Looks like Santa was good to everyone here...yes?
Another great day. Still holding long (and will continue holding long) here in Calgary!
I see a lot of chatter tonight about transferring between Institutions... I work at one - investment arm. Here's the low down on transfers:
They are all ATON eligible between banks and online brokerages, meaning they are all done electronically. Within the same bank (ie CIBC Wealth Management transferred to CIBC online) these transfers generally take about 1-2 business days (depending on what ape you have processing them). If you work with an advisor, they happen more quickly. If you're relying on a call center (ie BMO InvestorLine etc) you're looking at more time...
Between institutions (ie CIBC to ScotiaiTrade) these take usually 5-6 business days, but I have seen them take as long as 3 weeks in some instances. Fastest I have seen is 3 business days.
From the bank side which are usually mutual funds to the wealth side (internal) these can take anywhere from 5-10 business days. Again, depending on the ape that you have employed working for you.
Further to this, transfer out fees are on average 135-150 plus gst. It's highly unlikely the receiving institution will cover these for you unless you're bringing a good half mil or more. Sometimes there are promos that will cover it. On my team we do not cover unless the client asks - the costs are split between the firm and the advisor overlooking the account. They're unlikely to be covered for assets that are on a transactional basis. Fee based only...
Fee based advisors - despite having to pay an annual management fee ranging from 1-2 percent, it is sometimes worth it in the end and you ALWAYS have your calls answered and never have to worry about systems being down. (the fees are also tax deductible in non reg accounts). You have ongoing management along with the full plethora of services offered to you for free, tax planning, insurance, estate planning, banking etc etc. Now I'm starting to sound like a salesman... yikes.
Bottom line with brokerages - you get what you pay for. In all my years we have never had a "system down" or a call that hasn't been answered from a client. Holds and voicemail are unacceptable. Tonight I've now been on hold for an hour 20 to with TD helping my mother out...
I hope this sheds a bit of light for anyone curious about transfers! Shoot a message if you have any questions tho.
Muffy (is enjoyng yet another ice cold Hemplify this evening) Good Luck all!