CIBC vs ING Direct to Investor’s Edge RRSP: the Race is On

As I keep droning on and on about till I start foaming at the mouth and fall over backwards (although I’m not a Candidate for the Conservative party), we have/had a lot of RRSP GICs and similar cash investments scattered around that needed consolidating in our brokerage accounts. The problem is that most GICs cannot be transferred intact. Instead, we have to wait until they mature, direct to have them cash out into a RRSP daily interest savings account, then transfer them to our brokerage RRSP. It’s very slow; there’s lots of paperwork; and it’s very dull. So recently, I decided to set up a little race for my own amusement. I requested the cash in our RRSP DISA at CIBC be transferred into our Investor’s Edge account at the same time as I requested a transfer of cash from our ING Direct Tangerine RRSP DISA. Then I started the clock ticking.

Who won the RRSP Transfer Race?

Well, as you probably guessed CIBC did. Actually I was surprised at how quickly that transfer went through. It was much faster than last time. Anyway, here are the facts:

Saturday September 14, we had the CIBC branch staff complete their part of the T2033 and fax it to CIBC Wholesale Brokerage Operations.
We also had them complete and mail an original T2033 to ING Direct Tangerine and send a copy of that request to CIBC Wholesale Brokerage Operations.

On Thursday September 19, the CIBC DISA cash appeared in our RRSP brokerage account, back dated to September 18. That means the transfer took only 3 business days to complete. (It was in the account on the 4th business day.)

At that point there was still no sign of the ING Direct Tangerine money yet. But to be fair, CIBC had to mail the request to them and it probably didn’t even go into the mail until the end of the day on Monday, September 16.

Today, Wednesday, October 2, the money arrived in the brokerage account from ING Direct Tangerine. So that transfer took 12 business days. (It was in the account on the 13th business day.) That’s still a very respectable time for an inter-bank transfer!

Of course now we have to wait till 2015 to make the next transfer from CIBC. So I guess that will be the last race for a while….

UPDATE: Please be aware that as of January 2015, Tangerine has started charging a fee if you transfer your RRSP or TFSA from Tangerine to another bank, credit union, brokerage or financial institution.

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How to Sell a Mutual Fund in a CIBC Investor’s Edge Account

When we transferred our RRSP account from CIBC to CIBC Investor’s Edge, we transferred in several mutual fund holdings. These had been bought in the days of the Wealthy Barber, but now in the days of the Wealthy Barber Returns it is time to admit they are not an optimum investment and sell them. Here’s how we sold a mutual fund inside our Investor’s Edge account.

Check for Any Deferred Service Charges or Early Redemption Fees

Any time you consider selling a mutual fund, be sure to check a recent copy of the Fund Facts for the product. Make sure you will not have to pay a fee for the sale.

In particular, many funds have an “early redemption fee.” Basically that means if you sell the fund within a certain number of years after buying it, they will charge you money. The number of years can be up to 7!

If you can’t find the information you need online, call the financial institution that offers the fund and ask. For example, you could phone BMO and ask what the fees are for the BMO TSX Composite mutual fund. The description of the holding on your Account Holdings screen should include the fund’s number which will help the agent know exactly which fund you are asking about.

Investor’s Edge staff will not know whether you have to pay any “early redemption fees” or “deferred service charges.” They are a discount broker (unlike a full service broker) and they do not help you with these types of questions.

We bought our mutual funds before the turn of the century so there were no fees to sell them.

Enter Your Order before the Mutual Fund Daily Trading Deadline

Mutual fund orders must be placed before the cutoff time each day or they will be processed on the next business day.

As of September 2013, orders have to be placed by 3 p.m. Eastern Time.

Some funds may have an earlier cutoff time. If it is critically important to you, phone Investor’s Edge to discuss the cutoff time, or ensure you place the order at the start of the trading day.

Selling a Mutual Fund at Investor’s Edge

  1. Sign In to your Investor’s Edge account.
  2. From the link list on the left side of the page, select Account Holdings.
  3. Review your assets. Decide which mutual fund you wish to sell.

Review the Dividend Information

  1. Click on the Code for the fund of interest. It will open the Fund Centre facts for that holding.
  2. If your fund is about to pay a dividend in the next few days you may want to delay the sale till after the dividend is paid. I know that, in theory, the fund’s NAV should drop when the dividend is issued by the exact same amount. I also know that some mutual funds end up being worth more if you cash them 2 days after the dividend is paid than if you cash them 2 days before the dividend is paid. You’ll have to decide what’s best for your fund and your investments.

Enter the Request to Sell

  1. On the Account Holdings screen, click on the downward pointing arrowhead at the end of the line for the mutual fund you want to sell.
  2. From the list, click on the link: Sell
  3. The Mutual Fund Order Entry screen opens.
    Review the pre-filled fields. Is the information in the

    • Account number and type
    • Action: Sell
    • and Mutual Fund name and code

    fields correct?

  4. If desired, click on Get Quote to see the last day’s price.
    You will not know exactly what you are selling a mutual fund for because the price will be set at the end of today.
  5. In the Amount area select one of:
    • Dollars, and type in the value you want to sell
    • Units, and type in the number of units you want to sell; or
    • Sell All

    Conveniently, it will tell you the approximate value in $ of your holding based on the last day’s price and the number of units you hold.
    I selected Sell All.

  6. For non-registered accounts you may be able to choose where the proceeds of the sale are deposited. For an RRSP account, the only choice is to Pay to: CAD RRSP Account.
  7. Click on the Next button.

Check Your Order and Sign Off

  1. Review the order information on the Verify Order screen.
  2. If it’s correct, in the Trading Password field, type your password.
  3. Click on the Submit Order button.
  4. Make a note of your Order Tracking Number or copy and paste the confirmation into a document and save it.
  5. Click on the View Order Status button.
  6. The Status should be listed as Pending under the Mutual Fund tab.
  7. Click on the Sign Off button.
    For increased security, close your browser session.

When Will I Get My Money?

According to the Investor’s Edge Mutual Fund tutorial:
“The standard settlement period for mutual fund trades is the transaction date plus three business days (T+3). The settlement period for money market funds is the transaction date plus one business day (T+1).”

So I won’t expect to see any money deposited until the third morning after today.

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Did you ever experience any quirks when selling a mutual fund within Investor’s Edge? Or did you just wonder why you bought the fund in the first place? Please share your experiences with a comment.