DEPOSIT BROKER MANUAL

Transcription

1 DEPOSIT BROKER MANUAL IMPORTANT NOTE: The information provided in this manual is intended as a summary of Zag Bank s manual relating to the sale and administration of specified deposit products by brokers of Zag Bank. Complete terms and conditions relating to the agreement between Zag Bank and deposit brokers are outlined in the Zag Bank Deposit Broker Agreement, and nothing contained herein shall be construed as replacing or superseding the Zag Bank Deposit Broker Agreement or any laws, statutes, regulations, guidelines and rules with respect to the business of Zag Bank and the activities of the Broker on behalf of Zag Bank. Please be advised that this manual may be modified, amended or replaced at any time at the sole and absolute discretion of Zag Bank.

2 Contents ZAG BANK GUARANTEED INVESTMENT CERTIFICATE (GIC) For Personal Accounts Term Deposits... 4 Non-Registered Long Term GIC... 4 Interest Calculation... 4 Interest Payment Frequencies... 4 Interest Payments... 4 Maturity Payments... 5 Renewals... 5 Interest Rates... 5 Rate Guarantees... 5 COMMISSIONS... 5 Commissions are paid:... 5 Commission Schedule... 6 COMPLIANCE... 6 Client Identification... 6 Broker Obligations and Responsibilities... 7 Canada Deposit Insurance Corporation... 7 Anti-Money Laundering Regulations... 7 Mandatory Application Details... 8 Application and Identification Forms... 8 Application Attachments... 9 Politically Exposed Persons or Politically Exposed Foreign Persons (PEFPs)... 9 Third Party Determination... 9 Unusual Transactions or Unusual Attempted Transactions Dealing With Sanctioned Individuals and Countries OWNERSHIP Individual Joint Ownership Joint Tenants with Rights of Survivorship (JTWRS) Joint Tenants in Common... 11

3 Power of Attorney Minors Registration Changes Changing a Joint Owned GIC to a Single Owned GIC Changing Brokers Client Change of Address Cheques & Bank Drafts Stale Dated Cheques Depositing Cheques Lost Cheques Confirmation of Deposit REDEMPTION PRIOR TO MATURITY Estate Settlements Single Owner (any $ amount) Joint Tenants with Right of Survivorship (any $ amount) TAX REPORTING Fee Schedule... Error! Bookmark not defined. Document Retention and Destruction CUSTOMER COMPLAINT HANDLING POLICY The Process More Information Federal Consumer Provision Complaints CONCLUSION CONTACT US... 14

4 ZAG BANK GUARANTEED INVESTMENT CERTIFICATE (GIC) For Personal Accounts. Zag Bank Guaranteed Investment Certificate (GIC) For Personal Accounts Note: Zag Bank does not offer Corporate, Non Corporate, Formal Trusts Certificates or Registered Retirement Income Plans (RIF s). Term Deposits Non-Registered Long Term GIC Minimum investment $5, Term 1-5 years Odd terms are available (eg: 1 year 45 days) Interest is calculated daily and paid at maturity, or compounded annually and paid at maturity for any term longer than 1 year. Interest frequencies offered are Monthly, Semi Annual, Annual, Compound Annual (terms more than 12 months) and at maturity Interest is paid via EFT (void cheque to be provided by broker) or by cheque Certificate is not redeemable prior to maturity (refer to page 12 for exceptions) Certificate is not transferrable Certificate can be registered as Individual or Joint (maximum of 3 joint owners) Commission 25bps Interest Calculation Interest is calculated from the date of the last interest payment. Note: In the event of a leap year, interest is earned on the leap year day. Likewise, for GICs with terms greater than one year interest on the balance is calculated daily and paid for an additional day. Interest Payment Frequencies Monthly; Semi Annual; Annual, Compound Annual (only on terms greater than 12 months) and Paid at Maturity. Interest Payments Interest payments are made by: EFT to any Canadian bank/trust account/credit Union (a copy of void cheque is required from the client at the time of application) Please note due to processing times, the interest payment to the clients account could take 1 to2 business days to credit the external account after the anniversary date. Cheque, would be mailed to the clients address on file 7 to 10 days prior to the anniversary date.

5 Maturity Payments Maturity cheques for all GIC s (principal and interest) are sent directly to the Broker 14 days in advance of maturity date. However; upon Broker request in writing and received in a minimum of 48 hours prior to maturity date, the funds can be sent by EFT directly to the client account (a void cheque will be required). Renewals At this time Zag Bank does not offer auto renewals on Non-Registered GIC s. Upon receipt of the maturity payment cheque, the Broker can deposit the maturity cheque to Zag Bank and send an updated application and Client Identification and consent form to reinvest with Zag Bank along with the copy of the purchase cheque and deposit slip. Interest Rates Interest rates are subject to change without notice. It is the Broker s responsibility to ensure the rates quoted for Zag Bank are the current rates at all times. Current interest rates are located at and Rate changes will be ed in PDF Form to all Brokers in advance of the change. Rate Guarantees Zag Bank interest rates are effective per the date on the rate change notice sent to all brokers prior to the change. Zag Bank will guarantee an interest rate for one business day for non-registered GIC s. COMMISSIONS As per the Zag Bank Deposit Broker Agreement, the Broker is entitled to a commission. In the event that an investment product is cancelled or withdrawn for any reason whatsoever, or should the purchaser fail to fulfill their commitment with respect to the investment product, Zag Bank will redeem the remaining term and the commission amount may be deducted from the Broker s commission cheque. Commissions are paid: By Cheque to the Broker of record at the end of the month. By EFT to the Broker of record at the end of the month (void cheque to be provided) For commission amount of $50 or more a payment will be issued. For amounts less than $50, Zag Bank will accrue until the minimum payment threshold is met.

6 Commission Schedule SUBJECT COMMISSION STRUCTURE POLICIES Commissions are applicable on all GIC terms and are structured as follows:.25 OF 1% Calculated on the principal amount on an annual basis prorated for the number of days of the certificate i.e. PRINCIPAL AMOUNT X.0025 X TERM OF GIC (IN DAYS) 365 PAYMENT & REPORTING Commissions are paid by cheque or EFT each month, for all funds processed during the period, along with a commission statement outlining the details of each transaction. Note: Cheques will be issued for amounts of $50 or more. Lesser amounts will accrue until minimum payment threshold is met. COMPLIANCE Client Identification Two current pieces of Government issued personal identification must be obtained. ONE MUST BE A PHOTO ID. For identification to be acceptable, it must be: valid (unexpired) an original document in good condition Issued by a provincial, territorial or federal government with a unique identifier number Acceptable provincially or federally issued identification: o Driver s License o Passport o Certificate of Canadian Citizenship o Certificate of Naturalization o Record of Landing o Permanent Resident Card or Citizenship and Immigration Canada form IMM 1000, IMM 1442 or IMM 5292 o Birth Certificate o Old Age Security card issued by the Government of Canada o Certificate of Indian Status issued by the Government of Canada

7 o o o o A provincial health insurance card, as permitted to be used for identification purposes under provincial law. (British Columbia, Alberta, Saskatchewan, New Brunswick, Newfoundland, Labrador, and Nova Scotia). Health cards from Ontario, Manitoba, PEI and Quebec cannot be accepted for identification. Nexus Card Other provincial or territorial identification cards The Social Insurance Number card issued by the Government of Canada is an acceptable form of ID for proof of identity; however, Federal laws prohibit us from asking for the SIN for identification purposes. The Broker may record the information, if the customer volunteers it to them and the Broker has physically seen the card. (It must be documented as having been seen.) Broker Obligations and Responsibilities Brokers must comply in all respects with the Personal Information Protection and Electronic Documents Act (Canada) (PIPEDA). Establish and implement appropriate internal policies, procedures, guidelines and personnel training to address issues concerning privacy, including, but not limited to: Identifying personal information holdings Ensuring the safeguarding of personal information Ensuring consent requirements are met Addressing requests for access to personal information and handling of complaints Canada Deposit Insurance Corporation Zag Bank is a member of the Canada Deposit Insurance Corporation (CDIC). CDIC insures eligible deposits made with its members are subject to a maximum coverage limitation. CDIC insures GIC s up to $100,000. For more information on deposit insurance, call CDIC at or CDIC or visit the CDIC website at Anti-Money Laundering Regulations Brokers agree to assist the Bank in fulfilling its legislative obligations with respect to the detection and control of money laundering and terrorist financing activities, including compliance with the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and related regulations (PCMLTFR). Zag Bank requirements are based on the following: Proceeds of Crime (Money Laundering) and Terrorist Financing Act and Regulations there under, Registered Deposit Brokers Association (RDBA) adopted AML Standards, Zag Bank Policies Best Industry Practices All client identification is to be done on a face-to-face basis and recorded on the RDBA s Client Identification and Consent (CICF).

8 Mandatory Application Details Provide the following information for all owners on every application: Full Given Name(s) Date of Birth Civic and mailing addresses Phone number Social Insurance Number Occupation Must be specific and must describe the business the client is in, i.e. Self-Employed and should state Real Estate Sales, Plumber, etc. Business titles should be expanded i.e. Manager should be Manager of Personnel If retired, what are they retired from i.e Retired Manager of Personnel Citizenship Residency information for Taxation purposes (FATCA). A W9 form will need to accompany the application. Employer s name, address, and phone number Purpose of Investment ID Expiry (if applicable) Brokers must determine the source of wealth as a normal Know Your Client practices dictate. This information should be made available upon request. Determination of a Politically Exposed Person (PEP) and Politically Exposed Foreign Person (PEFP). If affirmative, broker must complete a PEFP/PEP form. Determination if the account will be used for the benefit of or on behalf of anyone not disclosed on the application Copy of client s cheque (re: source of funds) Copy of the deposit slip Copy of void cheque for EFT of interest payment distribution Broker s signature and Agent number must be on the application Brokers shall maintain the confidentiality of all customer information, whether received from the Customer or from the Issuer, and shall not use such information for any purpose, other than for the provision and administration of Investment Products purchased by the Customer, without the Customer s prior consent. Application and Identification Forms Zag Bank accepts the following forms which are available on the RDBA website at : RDBA Guaranteed Investment Application form and RDBA Client Information and Consent Form (CICF). Acceptable versions of these forms must be dated July 1, 2014 or newer. Please contact Zag Bank if you have any questions.

9 Application Attachments The following documents must accompany the application form. A photocopy of the cheque(s) used to purchase the investment Copy of deposit slip. Copy of void cheque, if applicable Client Information and Consent Form (CICF) signed by the broker and client. The application must be attached in all circumstances. Note: Brokers may only accept deposits in the form of a cheque from a Canadian Financial Institution signed by the client payable to Zag Bank. Politically Exposed Persons or Politically Exposed Foreign Persons (PEFPs) A Politically Exposed Person (PEP) or Politically Exposed Foreign Person (PEFP) is defined as an individual, family member, or associate that is or has held prominent public functions in Canada or a foreign country or state such as: A head of state or government A member of the executive council of government or member of a legislature A deputy minister or equivalent An ambassador or an ambassador s attaché or counselor A military general (or higher rank) A president of a state-owned company or bank A head of a government agency A judge A leader or president of a political party in a legislature PEPs refer to individuals, their family members or close associates, who have been entrusted with prominent public functions in Canada vs. PEFPs who are their counterparts in foreign countries. An individual or family member described above is a politically exposed foreign person regardless of their citizenship, residence status or birth place. Third Party Determination When a signature card or account operating agreement is created the Broker must take reasonable measures to determine whether the Depositor is acting on behalf of a third party. In this regard, specific information is required about the third party and their relationship with the Depositor completing the transaction. The section on the Form must be completed in full. Note: If the Broker is not able to determine that there is in fact a third party, but the Broker has reasonable grounds to suspect that there are instructions of a third party involved, the Broker has to keep a record of why they suspect the Depositor is acting on a third party s instructions. The Broker will contact Zag Bank directly should this situation arise. (Refer to the RDBA application form and CICF as applicable)

10 Unusual Transactions or Unusual Attempted Transactions Every transaction has the possibility of being a money laundering / terrorist financing situation. In this regard it is the responsibility of all parties to the transaction to be vigilant in watching for any signs or indicators that might evidence a reportable situation as the Bank must report where there are reasonable grounds to suspect that a transaction or an attempted transaction is related to the commission or attempted commission of a money laundering or terrorist activity financing offence. The Broker is responsible to ensure that all documentation is fully completed so as to facilitate any required reporting by Zag Bank and to be aware of any situations or actions which may seem out of the ordinary. The CICF will address these points and further requires that the Broker fully disclose the occupation or actual type of business the Depositor is in and the purpose and intended use of the account. (Note: This reporting may result from either a possible suspicious or attempted suspicious transaction as outlined in the RBDA AMLATF training). The Broker is encouraged to implement a Know Your Client (KYC) strategy in order to determine if a transaction may be suspicious. Dealing With Sanctioned Individuals and Countries From time to time a regulator or government agency may announce the implementation or the removal of special sanctions under the Special Economic Measures Act (SEMA) against specific foreign states, persons of a foreign state or national of a foreign state. The Broker must determine if the Depositor may have such dealings by asking if the Depositor deals with any individuals and/or entities outside of North America. If the Depositor does have any dealings, the details should be provided to Zag Bank together with the application and other documentation. OWNERSHIP Zag Bank will accept GIC applications from the following: Canadian resident excluding residents in Quebec. Individual, Joint ownership with survivorship (JTWRS) (excluding the province of Quebec) Individual Zag Bank will only accept a non-registered investment plan or account in the client s name. The client or Broker is the only party that can provide instructions with respect to the investment (Exceptions may apply with Power of Attorney documents) upon death; the investments will be paid out to the client s estate. Joint Ownership Commonly referred to as joint ownership, an investment can be owned by more than one person, but not more than 3 joint owners.

11 Joint Tenants with Rights of Survivorship (JTWRS) With JTWRS, Zag Bank will accept instructions from any one of the Joint Owners and/or the Broker. Upon death of any one of the Owners, the investment will be held in the name(s) of the surviving Owner(s) or redeemed to the Surviving Owner. No claim can be made by the deceased s estate. Joint Tenants in Common Joint Tenants in Common GIC s are not accepted by Zag Bank. Power of Attorney A person having Power of Attorney over another Joint Tenant may not remove them from a Joint GIC. They may only act in the best interest of the person for whom they have Power of Attorney over. Zag Bank requires a certified true copy or original notarized copy of a Power of Attorney. Minors Zag Bank does not accept GIC s for minors. Minors are persons under the age of majority in their province. Registration Changes A client may add names to their GIC(s). To add a name to a GIC, complete the application forms and paperwork as per a new client and submit to our office, along with a signed form from the primary GIC owner who is authorizing this addition to their GIC. A GIC may have up to 4 names on it. Upon maturity, the cheque is made payable to all client names on the GIC. A new confirmation will be sent to the client after an additional owner is added to the GIC. Changing a Joint Owned GIC to a Single Owned GIC If the primary client wishes to remove themselves from a GIC and leave only the remaining account holder, we require both signatures on the request and a signatures guarantee stamp. Changing Brokers A change of Brokers cannot occur during the term of a GIC, unless the Broker is contracted with Zag Bank. For these types of transfers, we require a Letter of Direction signed by the client. No commissions will be reallocated as a result of such a change. Client Change of Address Brokers must notify Zag Bank in writing within 30 days of notification of client s address change. Brokers may send a signed copy of the instructions to Zag Bank. The instructions must be clear and provide sufficient information to make the necessary changes. Cheques & Bank Drafts Stale Dated Cheques Cheques that are six months and older are considered stale dated. In the event that a cheque issued by Zag Bank has not been negotiated within the 6 months from issue, the Broker shall return them to Zag Bank for replacement.

12 Depositing Cheques - When making a purchase, deposit the cheque(s) to Zag Bank s account Do NOT return any cheques to Zag Bank (except in the event that cheques have been stale dated). Make the deposit using the deposit slips provided Lost Cheques Post-dated cheques cannot be replaced until the maturity date has passed. At that time, Zag Bank will fax Bond of Indemnity Forms to the Broker who may sign on behalf of the client to enable replacement of the lost cheque(s). Regular lost cheques (i.e. not post-dated) can be replaced at any time. The waiting period to replace lost cheques is usually one day (until the stop payment has been accepted by Zag Bank). There is no fee to replace lost cheques. Confirmation of Deposit GIC Confirmation will be mailed directly to the client within 14 business days of receipt of a compliant and complete GIC application and documentation.. PDF copies can be sent to the broker upon request. REDEMPTION PRIOR TO MATURITY GIC s are not redeemable prior to maturity except: upon the death of the Deposit Owner(s) Documented financial hardship subject to the approval of management discretion. Upon review of your customers unique situation, if it is deemed that early redemption is the best way to meet the customers needs, a claw back of commission and recapture of any interest paid will be processed at the time of withdrawal. Estate Settlements GIC s are redeemable upon the death of one of the registered owners. A notarized or original death certificate, Letter of Direction from the Executor and a certified copy of the will is required to process. Single Owner (any $ amount) Upon death, the investments may be redeemed to the client s estate. Documentation required to process the redemption is: Original or Original Notarized copy of Death Certificate or Funeral Director Certificate Letter of Direction signed by the Executor or Trustee A certified copy of the will. Joint Tenants with Right of Survivorship (any $ amount) Upon the death of any one of the Owners, the investments will remain in the names of the Surviving Owners or redeemed to the Surviving Owner. The deceased s estate does not have any claim on the investments. Documentation required to process the redemption or to remove the deceased party is:

13 Original or Original Notarized copy of Death Certificate or Funeral Director Certificate Letter of Direction signed by the Survivor TAX REPORTING Zag Bank issues annual tax receipts based on CRA guidelines. Document Retention and Destruction Zag Bank will retain a copy of all documentation relating to clients for a period of 7 years from the date of maturity (12 years max) CUSTOMER COMPLAINT HANDLING POLICY Zag Bank is committed to providing our valued customers with exceptional customer service. There may, however, be situations that arise from time to time where you may feel you ve been dealt with unfairly. Whatever the nature of your concern, we ll treat it professionally, openly and courteously. As a valued customer, this is what you expect, and deserve. If you have a complaint about a Zag Bank product or service, our Complaint Handling Policy will ensure your complaint is addressed quickly and fairly. The Process Your concern can first be discussed with our Deposit Operations Department. If they are unable to assist you, the department Manager may be able to resolve your issue. If after this initial review, you are still not satisfied with the final response to your concern, you are welcome to contact the Ombudsman. Submit your complaint in writing with all supporting documentation. The Ombudsman will respond as soon as it is reasonably possible by acknowledging receipt of the complaint and advising that an investigation is under way. The Ombudsman will then thoroughly and objectively investigate your complaint. Zag Bank commits to respond to all formal complaints within 30 days of receipt by the Ombudsman. Your response with Zag Bank s final position will be in writing. If you are not satisfied with the final decision of the Ombudsman and wish to pursue your complaint further, there is an independent industry mediator that you may contact. The contact information for the mediator will be provided in the final written response from the Ombudsman. Contacting the Ombudsman: By Mail: Ombudsman for Banking Services and Investments (OBSI) 401 Bay Street, Suite 1505 PO Box 5

14 Phone: Toronto, ON M5H 2Y More Information If you have any questions about our complaint handling policy or wish to discuss a complaint, contact the Zag Bank Deposit Operations Department Federal Consumer Provision Complaints The Financial Consumer Agency of Canada (FCAC) supervises federally regulated financial institutions to ensure they comply with federal consumer protection laws, including, complaint-handling procedures. If you have a complaint about such a consumer provision, you can contact the FCAC: In Writing: Financial Consumer Agency of Canada (FCAC) 427 Laurier Ave. West, 6 th Floor Ottawa, ON K1R 1B9 On the web: Toll-Free: 1-(866) CONCLUSION As a reminder, nothing contained in this manual is intended to replace or supersede the Zag Bank Deposit Broker Agreement; therefore, in the event of any conflict between this manual and the Zag Bank Deposit Broker Agreement, the provisions of the Zag Bank Deposit Broker Agreement shall prevail. CONTACT US General Inquiries Phone Fax gicprocessing@zagbank.ca brokers@zagbank.ca Address Unit Railway St SE Calgary, AB T2H 2V6