In the world of investment planning the T2033 is the document used to transfer registered funds between institutions. The purpose being that the money will not lose its registered status when it moves from institution to institution. The reason I mention it this week is to remind everyone that the T2033 process takes time.
Relinquishing institutions are required to process a T2033 in a reasonable period of time. However, each institution has a retention process in place because they do not want to lose the assets. Typically, a representative will call the client and try to persuade them to stay and not transfer their money out. Sometimes this works, but by in large, the money gets moved out and you take over as the new advisor.
My experience is that this process takes between 4 to 6 weeks. Sometimes it’s very quick, other times it can take what seems like forever. A way to expedite this process is for your client to call the relinquishing institution and demand the transfer request is processed.
If you have business that you wish to have on your books in 2016, now is the time to request the transfers. Believe or not, 6 weeks from now, the year will be almost over. This is also important if your client wishes to receive a notional bonus on a 2016 GMWB deposit. And if you’re in the RESP market, deposits before December 31st will attract the 20% grant for 2016.
As always, I look forward to your comments.
Director of Wealth
Qualified Financial Services
416 786 4140