Even in the case of a short-term absence, the time away from the practice requires that another Representative be appointed to take over the business of the Representative on record. A few simple steps and basic precautions will go a long way towards ensuring the smooth running of operations and the least possible disruption of service to the clients of the main Representative.
(Excluding Investia Corporate Branch Managers)
Ensure they have the required proficiencies and registration categories.
Yes. A Licensed Assistant or the Branch Manager may service client requests on a temporary basis but cannot be the solution for the duration of the absence.
Representatives must notify the Investia Registration department about any upcoming absences and provide the contact details of the Replacement Representative.
Possible4
The Servicing Representative must submit a Commission Distribution Form
Recommended6
Mandatory (For an absence of three months or more).
A representative who plans to be absent must always prepare their absence well in advance and notify their clients verbally or in writing so that the Replacement Representative is not faced with any emergency situations.
1 The Servicing Representative must appoint a Representative to service client requests during their absence and ensure that the individual has the same proficiencies and registration categories in order to be able to serve all clients.
2 The Servicing Representative should always enter into a formal agreement with another Representative in order to avoid potential inconvenience. Even for absences of less than one month, it is recommended that an agreement be entered into to appoint another Investia Representative, a Licensed Assistant or the Branch Manager to service client requests. Once it has been signed by both Representatives, the agreement must be sent to the Branch Manager (if applicable), their Compliance Supervisor as well as the Investia Registration team at registration@investia.ca.
3 Usually, for a short-term absence, no monetary compensation agreement is entered into between the Representatives for services provided. However, you may enter into an agreement at your discretion.
4 Usually, for a medium-term absence, a Commission Sharing Agreement is entered into between the Representatives, so that the Replacement Representative receives monetary compensation for services provided during the absence of the Servicing Representative. The Servicing Representative must complete a Commission Distribution Agreement and forward it to the Registration Department at Head Office. Commission sharing can be based on acquisition and/or maintenance commissions.
5 In the case of a short-term absence, this situation is very rarely encountered and no specific agreement is usually entered into.
6 If, upon your return, one of your clients wishes to continue their business relationship with the Replacement Representative, it is important that the amount to be disbursed for the assets that will remain with the Replacement Representative upon termination of the Replacement Agreement be established in advance and stipulated in the agreement.
Once client relationships have been placed in his or her hands, the Replacement Representative should take into account a few guidelines laying out the mechanics of account administration. As short-term absences are not immune from problematic issues, an effective operational plan should be put in place before they manifest themselves.
Throughout the duration of the absence, client accounts will remain under the name and code of the Servicing Representative. The name of the Servicing Representative will continue to appear on portfolio statements issued to clients by Investia.
The Replacement Representative ensures service to existing clients for all trading activity by processing trades under the code of the Servicing Representative.
It is important to note that the Replacement Representative becomes responsible for all trades processed during the absence of the Representative initially named on the account.
For the protection of both Representatives, only unsolicited trades (i.e. orders for which no advice is provided by the Representative) should be performed by the Replacement Representative. To obtain additional information regarding unsolicited trades, please refer to Investia's Compliance Policies and Procedures Manual.
Trades performed by the Replacement Representative in the absence of the Servicing Representative must always be signed off on by the client to process a trade. Under no circumstances may the Replacement Representative use a Limited Authorization Form (“LAF”) to process a trade.
The Replacement Representative must sign their own Order Instruction Forms under the code of the Servicing Representative. In order to avoid rejected orders from fund companies, it is recommended to specify “In replacement of Mr. or Ms. X” next to your signature.
As added protection, it is recommended to indicate that the trade was unsolicited on the Order Instruction Form.
For medium-term absences, the Replacement Representative will be granted access to the client files of the Servicing Representative in Univeris by forwarding an email request to the Registration team at registration@investia.ca. A Non-disclosure Agreement is included in the Replacement Agreement template.
The Replacement Representative will have the necessary access to process trades in Univeris themselves (unless their branch already offers them this service).
However, before performing any trade for a client, even unsolicited, the Representative should ensure that the trade is in line with the client’s profile and verify the client’s KYC information in Univeris or with their branch.
Existing clients may have their portfolios realigned before the return of the Servicing Representative. However, this type of transaction must always be unsolicited and the Replacement Representative must ensure that all trading activity is in line with the client's profile by verifying the client's KYC information with their branch and keeping a record to that effect on file.
In rare instances, a fund company may refuse to process a trade if the settlement document is signed by another Representative. In this case, please contact our Client Service team so that appropriate action may be taken with the fund company to resolve the issue.
The Replacement Representative must ensure that the client’s KYC information is up to date before processing trades for the client. If the client already has an Account Opening/KYC Update form that is less than 36 months old on file, the Replacement Representative can use this form to process trades by countersigning it, provided that they have verified that the information relating to the client’s profile, investment goals and risk tolerance is up to date and that that a record to that effect is on file.
If, however, the form on file is older than 36 months, then the Representative Code and Representitive Name on the form must remain as the Servicing Representatives name, and the Replacement Representative is to “sign on behalf of” with their own name/signature.. This will help the Replacement Representative defend themselves against any future complaints or lawsuits from clients. Upon their return, the Replacement Representative should in turn approve all updates and verify the record of trades performed by their replacement during their absence.
The Replacement Representative must follow up on all trading activity to ensure that each order has been properly executed and processed according to the client's instructions. This is a necessary step to avoid errors resulting in a Letter of Indemnity and costs for the Replacement Representative.
If, during the period of absence, an existing client wishes to open a new account, the Replacement Representative may do so by completing the required documentation with the client and signing an Account Opening/KYC Update form for the plan. The new account will be opened under the code of the Servicing Representative. However, upon their return, the Servicing Representative will be required to review and countersign all forms and keep a record to that effect on file.
Since the Replacement Representative will have access to client files in Univeris and since most documents are usually imaged, most of the documents required to service client requests should be accessible in the imaged documents section of Univeris under Client/ Details / Documents. However, we still recommend that an agreement be entered into between Representatives to allow access to the physical documents should this prove necessary.
The Replacement Representative is bound by the same information protection requirements as the Servicing Representative and should ensure that client information always remains confidential.
Investia's monthly administration fees will continue to be billed to the Servicing Representative for the first three months of their absence. If the Servicing Representative is absent for more than three months, monthly fees may be suspended until they return to work. If you will be absent for more than three months, please inform the Registration team at registration@investia.ca so that the fees are suspended until your return.
An important step towards completing the absence management process is validating the work done by the Replacement Representative during the absence. Trading activities should be reviewed by the Servicing Representative upon their return to ensure that they are in line with suitability criteria and the client's instructions.
Upon their return, the Servicing Representative should review all trading activity conducted by their clients during their absence. The Servicing Representative must review and countersign Account Opening/KYC Update forms for any accounts opened and updates made by the Replacement Representative during their absence.
Upon their return, the Servicing Representative must notify the Investia Registration team at registration@investia.ca to cancel the access granted to temporary replacements and restore their own.