Investment Loans and Collateral Accounts FAQ

Annual administration aees for MFDA, IIROC, AMF dealers/advisors/clients

Clients who have a investment account with an active investment loan will not be charged the annual administration fee.

B2B Bank does charge a $50 NSF fee and an amount for the PPSA registration for segregated funds on our investment loans. However, the fee schedule your client received is applicable to their B2B Bank Dealer Services investment account.

B2B Bank Dealer Services offers a variety of annual account fee discounts once the investment loan has been paid in full. Clients can receive a $100 discount on a non-registered account held with a registered account or a $125 discount for holding 100% of B2B Bank Products. Clients can also receive a $60 discount per account if they hold two or more of registered or non-registered accounts. In the case of joint accounts, the primary account holder's SIN, is used to determine annual account fee discounts.

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Transactional fees for MFDA, IIROC, AMF dealers/advisors/clients

Transactional fees are fees charged for performing client initiated transactions on a B2B Bank Dealer Services account. These fees are listed on the investment account fee schedule provided. These fees are all fees outside of the annual administration fee.

For November 10, 2012, converted B2B Bank clients with investment loans, there will be no transactional fees from conversion date up to and including March 3, 2013. Effective March 4, 2013, activity related to non pledged transactions or positions will be chargeable. Investment loans (converted from MRS Trust to a B2B Bank, in May 2012) and the collateral held in an investment account with B2B Bank Dealer Services up to and including November 3 are subject to transaction fees. For newly created Investment Accounts created after November 10, 2012, any activity related to non-pledged transactions or positions will be chargeable. Please note the B2B Bank Investment Loan NSF fee will apply at all times.

Clients will have 90 days after their loan is paid out to transfer out without fees. After 90 days, if the account remains open at B2B Bank Dealer Services, all transactional fees and the annual account fee will apply.

Your pledged account will continue with no fees as long as you transact like your current B2B Bank Investment Loan account. The transactional fees that were introduced are those associated with your new ability to hold other non-pledged investments, such as small business or equities.

The fee schedules can be found online at Fees and Rates.

Yes, if there is no investment loan, then fees can be charged. The annual account fee is assessed on April 30th and collected in June each year. As long as there is an active investment loan associated with the investment account, annual fees will be waived. You should direct B2B Dealer Services to close the account after notification that the loan was declined.

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Trading fees for MFDA, IIROC, AMF dealers/advisors/clients

There are 3 methods available.

  • Advisors can use the web trading function within Advisor Access
  • Advisors can use their dealer back office system
  • Advisors can use the paper trade ticket. If the paper trade ticket is used a paper trade fee may apply.

To avoid the paper trade fee, trades should be placed through our online tool, Advisor Access, or via wire order at your dealer's back office. Please note that any trade that is faxed or mailed and is inputted on the client's behalf by B2B Bank Dealer Services, is subject to the paper trade fee.

The paper trade fee applies when a faxed or mailed trade ticket is received by B2B Bank Dealer Services for a mutual fund trade that can also be initiated via Advisor Access or the dealer's back office system.

The paper trade fee is collected at the time of the trade. For a buy trade, the fee is deducted from the amount of the purchase (e.g. a buy of $1,000 results in a purchase of $995). For a sell gross trade, the $5 fee is deducted from the amount of the sell (e.g. a sell gross of $1,000 results in cash in the account of $995). For a sell net trade, the $5 fee is added to the trade (e.g. a sell net of $1,000 becomes a sell to net of $1,005 and results in cash in the account of $1,000).

Your Advisor has sent in trade instructions to B2B Bank Dealer Services via paper where there was an alternative electronic method of placing the trades, such as Advisor Access and your dealer's back office system. The paper trade fee is meant to encourage advisors to use electronic methods for placing trades; this ultimately prevents data entry errors and ensures your trade instructions are processed without delay. We encourage clients to speak with their financial advisor to avoid the paper trade fee.

The paper trade fee is applicable on the B2B Bank Dealer Services entity as advisors have alternative methods of placing trades electronically, such as Advisors Access and their dealer's back office system. MGAs with B2B Bank will not have access to Advisor Access for online trading.

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Transfer-out fees for MFDA, IIROC, AMF dealers/advisors/clients

If your client wishes to transfer-out excess collateral to another financial institution, they will not be charged any fees provided they sign a transfer request within 90 days of paying out the loan.

If your client wishes to close their account and have a cheque/EFT sent to them, they will not be charged any fees provided they sign the withdrawal form within 90 days of paying out the loan.

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Benefits for MFDA, IIROC, AMF dealers/advisors/clients

Clients will have one consolidated account that holds both their pledged and non-pledged assets that will allow for easier monitoring and control of their investing though online viewing capabilities. Plus your client's annual account fee will be waived as long as they have an investment loan attached to the account.

Yes, pledged accounts are viewable online via Advisor Access.

Yes, pledged accounts are viewable online via Investor Access.

Advisors and clients will have online viewing of their pledged holdings and loan details, such as loan type, LTV and loan balance.

Advisor/Investor Access is an online web-based facility to view your/your clients investment holdings and account activity. For the benefits of Advisor/Investor Access, please refer to the following comparison chart.

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Online features - Investor Access for MFDA, IIROC, AMF clients

For the benefits of Investor Access, please refer to the following comparison chart.

Clients should contact the B2B Bank Call Centre at 1‑800‑387‑2087. After an ID is assigned, clients can complete the registration process.

Client's will receive their Investor Access user ID on their B2B Bank Dealers statement and/or trade confirms until they register. Investors can also contact the B2B Bank Call Centre at 1‑800‑387‑2087.

Clients can contact the B2B Bank Call Centre at 1‑800‑387‑2087 to retrieve a user ID for Investor Access. After an ID is assigned, clients can complete the registration process at Investor Access.

Investors can learn more about Investor Access at About Investor Access.

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Online features - Advisor Access for MFDA, IIROC, AMF dealers/advisors

Advisors have access to 27 online reports within Advisor Access. These reports assist advisors with daily account management and provide detailed reporting on an advisor's client base.

The benefits of Advisor Access include the following:

  • loan type, LTV and loan balance
  • view the current value of your clients' investments
  • review trading activity and pending transactions
  • open accounts in real time
  • trade N$M eligible mutual funds online and HIIA
  • access to 39 online reports for account and book management
  • view and print an eligible funds list for B2B Bank Dealer Services account and access the B2B Bank Fund Collateral Eligibility list
  • access to 7 years of statements, confirms and tax slips
  • access PDF version of B2B Bank Dealer Services applications and forms.

Advisors should contact the B2B Bank Call Centre at 1‑800‑387‑2087. After an ID is assigned, Advisors can proceed to register which will include updating their user profile and creating a new password.

Advisors can learn more at About Advisor Access.

Yes, clients and advisors can sign up for eDelivery and receive an email notification when statements, trade confirms or tax slips are available within Investor Access or Advisor Access.

Statements are stored online for 7 years.

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Investment Loan Interest/Funding (Mutual Fund Investment Loans for MFDA, IIROC, AMF dealers/advisors)

Interest starts to accrue as soon as the loan proceeds have been advanced to the new investment account. The loan proceeds will typically be advanced within 1 business day of funding or 'funded' status of the loan.

B2B Bank strives to adjudicate and fund all loans as quickly as possible so that you may proceed with the purchase(s) at your earliest convenience. Your rate is based on the current investment loan rate at the time of funding.

Advisor Access provides advisors with a daily cash credit report, which will list all clients with a cash balance. Plus advisors will received a funded EASE e-notification when the loan has been authorized for funding, in addition a funded fax notification will be sent from B2B Bank confirming the details for the funded loans. Note: Interest starts to accrue as soon as the loan proceeds has been advanced to the new investment account. The loan proceeds will be advanced within 24 hours of funding or 'funded' status of the loan.

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Online features - dealer (MFDA, IIROC, AMF)

Dealers will be able to view the following within Advisor Access:

  • loan type, LTV and loan balance
  • view the current value of your clients' investments
  • review trading activity and pending transactions
  • open accounts in real time
  • trade N$M eligible mutual funds online and HIIA
  • access to 39 online reports for account and book management
  • view and print an eligible funds list for B2B Bank Dealer Services account and access the B2B Bank Fund Collateral Eligibility list
  • access to 7 years of statements, confirms and tax slips
  • access PDF version of B2B Bank Dealer Services applications and forms
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Statements (Mutual Fund Investment Loan clients)

Clients will receive one statement quarterly (monthly if reportable activity, except B2B Bank Intermediary services) from B2B Bank Dealer services for the pledged account. Clients will also receive a quarterly statement from B2B Bank for the investment loan.

Presently, online statements are only available for your pledged accounts. Should online statements be made available for your investment loan statements, B2B Bank will communicate with you.

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Fund collateral eligibility

You will be notified with either a phone call or an advisor notification by fax within 24-48 hours of the purchase of ineligible collateral. Advisors will be encouraged to cancel or switch the purchase to an eligible collateral fund based on the Fund Collateral Eligibility List. B2B Bank will also review the fund for eligibility.

Yes, all of the assets are frozen in your investment account despite the pledge collateral that is in association with their loan account. Advisors will have the option to trade these non-pledged funds or securities. Please refer to our fee schedule for trading fees on non-pledged funds or securities. In the event that your client wishes to transfer out or redeem the non-pledged assets from the investment account, this can be done with through a written request and appropriate forms completed.

You are encouraged to monitor the Loan-to-Value (LTV) ratio which is displayed in the loan details screen on Advisor Access. We will alert you when your client is in warning and/or call position. Please contact Client Services for more options on how to avoid margin call.

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Miscellaneous for MFDA, IIROC, AMF dealers/advisors/clients

The new model allows clients to have a pledge account, which can hold non-pledged assets and pledged assets simultaneously. Clients can benefit from consolidated reporting and online access. As long as there is a loan attached to the account the annual account fee is waived. Advisors benefit as they now have the ability to consolidate their clients holdings across multiple financial institutions into one account. Advisors gain the benefit of online viewing and reporting.

Advisors can login to Advisor Access to retrieve information on the pledged accounts or collateral held within these accounts. Alternatively advisors can contact the B2B Bank Call Centre at 1‑800‑263‑8349.

Advisors can login to Advisor Access to retrieve information on investment loans, such as loan type and loan balance. Alternatively advisors can contact the B2B Bank Call Centre at 1‑800‑263‑8349.

For P+I loans, 1 for 1, 2 for 1 and 3 for 1. Your client can choose to have the dividend or distribution redirected to their bank account, with options to either increase their current loan payment or provide B2B Bank Dealer Services instructions to paydown their loan by issuing a cheque. In addition, your client also has the option to have their distribution paid into the cash portion of the investment account and with ad hoc instructions to use the cash position to pay down the loan. 100% interest investment loan, dividend or distribution must be reinvested.

Yes, all MFDA, IIROC, AMF will be receive a new account number for the investment account in their welcome kits.

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Segregated fund collateral split MGA

No, clients will not receive a welcome kit, however, a separate communication will be mailed post conversion confirming the details of the collateral split and their new pledged account number.

No, clients with investment accounts which only hold segregated funds (MGAs only) will not have access to view or inquire through Investor Access. These accounts are registered with B2B Bank and this functionality will not be available.

The paper trade fee is applicable on the B2B Bank Dealer Services entity as advisors have alternative methods of placing trades electronically, such as Advisors Access and their dealer's back office system. MGAs with B2B Bank will not have access to Advisor Access for online trading.

B2B Bank will place the purchase orders based on the purchase instructions that are written on the original Life Insurance Company application form or on the Segregated Funds Trade Ticket. When pledging additional segregated funds, this option is now available on the Loan Tab in the EASE application.

 Advisors can contact Client Services at 1‑800‑263‑8349.

These pledged accounts are not subject to fees; its business as usual providing that the pledged account has an active loan and the holdings are all Segregated Funds. B2B Bank does charge a $50 NSF fee and an amount for the PPSA registration for segregated funds on our investment loans.

Interest starts to accrue as soon as the loan proceeds has been advanced to the new pledged account. The loan proceeds will be advanced within 1 business day of funding or 'funded' status of the loan, at which time B2B Bank will place the purchase wire orders for all MGA clients.

The fees are charged or added to the amount of the loan advance in the client's B2B Bank loan account. PPSA fees vary according to each province.

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