Account migration and opening

Your LBCFS investment portfolio will be transferred in kind to an account at NBSI in which your systematic investments and withdrawals will be respected and continued. Be advised that if one of your systematic investments or withdrawals is scheduled during the migration period, it may be processed a few days later.

 

Please note that additional transactions in your LBCFS investment portfolio (such as purchases, new systematic plans and switches) will not be permitted after migration; however, redemptions will remain available. The transfer of your investment portfolio will take place gradually over the days following the migration.

 

As a result, it may take a few days after the migration before all of your assets and your full investment account balance are visible.

 

As a client of NBSI, you will have access to several products and services as your onboarding progresses. You will need to update your investor and risk profiles within 12 months of the migration. After this time, only redemptions will be allowed until the update is completed. You can update your information online, on your mobile device or with the help of an advisor at a branch. Whether you currently deal with an LBCFS advisor or not, the National Bank branch that is closest to your Laurentian Bank branch will be assigned to you, but you may, at any time following the migration, communicate with the point of contact of your choice. NBSI’s product offering is limited to exclusive products and services created and offered by National Bank and its subsidiaries. Please refer to section 3.2. Products offered to find out more.

 

As a mutual fund dealer, NBSI determines the suitability of your investments based on your risk profile and investment goals. Information about your personal and financial situation is required to determine your needs, goals and the suitability of your investments.

 

All of this information must be validated and updated at least every 36 months or sooner, should there be a material change in your personal or financial circumstances.

 

Your accounts registered in the dealer’s name held at LBCFS are protected by the Canadian Investor Protection Fund (CIPF), in accordance with its guarantee principles. The CIPF coverage applicable to your accounts with LBCFS will be preserved when your accounts are migrated to NBSI. Please refer to the CIPF’s Coverage Policy at www.cipf.ca for a description of the nature and limits of coverage, or contact the CIPF at 1-866-243-6981.

 

Should our offerings no longer suit your needs, you may choose to close your account, in which case your LBCFS holdings will need to be liquidated or transferred. Please refer to section 1.9. Contact us for more information.

 

Change in holding mode

 

If you have an account registered in your name, its holding mode will be automatically transferred from a client-named account to a nominee account on the migration date. This means that your mutual fund units—currently registered in your name in the mutual fund company’s registers—will transition to being registered under NBSI, acting on your behalf. This change will not affect your ownership rights and the assets you hold with us will remain secure and unchanged.

 

The value of your investments will remain the same and the transfer will have no tax implications. Please note that you will need to update your investor and risk profile at migration to access NBSI’s products and services.

Benefits of the change:

 

• You will receive a consolidated NBSI statement, either by mail or electronically, showing all of your investments in one place for a better digital experience.
• It will no longer be necessary to fill out other forms for the mutual fund company, as signing the NBSI documents will be sufficient.
• You will have access to new tools, such as the National Bank app and the online bank, to track your portfolio in the coming months.
• You will be eligible for protection from the Canadian Investor Protection Fund (CIPF).

 

Joint investment account linked to a bank account at another financial institution

 

If you have a joint investment account that is linked to a bank account at another financial institution, such as for your systematic investments, note that NBSI will not be able to maintain this link. Instructions from such an account will be cancelled. We recommend that you contact us promptly following the migration to provide us with the required banking information.

LBC Trust or B2B Trustco, depending on the case, will withdraw as the trustee of your plan and will be replaced by Natcan Trust Company, which will take over the administration of your registered plans as trustee. The change in trustee does not impact you. To consult the Natcan Trust Company’s declarations of trust that apply to registered plans, visit nbc.ca/lbc-legal.

The Registered Disability Savings Plan (RDSP) is not available through NBSI. At migration, if you have an RDSP account with LBCFS, it will be maintained directly with the mutual fund company. Additional transactions in your RDSP account (such as purchases, new systematic plans and switches) will not be allowed; however, redemptions will remain available. Following the migration, NBSI will contact you to determine the next steps, including the transfer of your RDSP account to another broker offering this type of plan, with the option of transferring it to a National Bank entity.

At migration, the terms of your LBCFS Account Agreement may be modified to align with the terms of the NBSI Investment Account Agreement, available at nbc.ca/lbc-legal.

 

NBSI will consider that you have accepted the changes if you continue to use your products or services as of the migration date. A copy of the NBSI Investment Account Agreement that now applies to you as an NBSI client, including the details of the various clauses, is attached to this guide. The following is a specific excerpt that we would like to bring to your attention.

When your fixed-rate Guaranteed Investment Certificates (GICs) migrate to National Bank, the Laurentian Bank rates and term lengths on outstanding GICs will remain unchanged until maturity. The current terms and conditions will continue to apply, with some changes (detailed below). Any purchases or renewals made after migration, including GICs that automatically renew upon maturity, will be on National Bank’s standard GIC terms and conditions, which will be disclosed to you at the time of purchase or renewal.

 

Your GIC will automatically renew at maturity at the fixed annual interest rate in effect on the day of renewal and will be reinvested for the same term. The exception is “Term Deposits,” which will be reinvested in the 12-month redeemable without penalty GIC. The interest rate will be fixed and calculated annually on the principal amount.

 

The annual interest rate will be determined by multiple factors, including the term of your GIC, the type of interest, the frequency of interest payments and the redemption features of your current GIC.

 

You may change your instructions on how your investment should be handled after the GIC matures, so long as you communicate your preferences before maturity. For example, you could direct us to no longer reinvest the GIC and to immediately transfer the investment into a bank account at maturity. You may cancel a GIC free of charge within the 10 business days following its renewal date.

 

Rates guaranteed or quoted by Laurentian Bank advisors for upcoming renewals or purchases may no longer be offered after the migration. As your GIC approaches maturity, you can discuss your investment options with a National Bank advisor.

Transition with respect to issuers: