A registered RRSP is a Canadian retirement account where...
Hi Jim,
Once again, thanks a million for coming over to Vancouver, I enjoyed your talk tremendously!
I will be moving my investments out of HSBC, and I am trying to find a bank which will allow me to Direct register. I also have an account with http://www.credentialdirect.com/ They tell me they allow direct registration (for $50.00) of my shares in a cash account but on within a TFSA, RRSP or RESP. Does this make sense?
What is your opinion on credential direct? – they are Canadian own, and as far as I can tell they did not take bail out money. I feel the fees from Sprott are a bit steep, so hopefully I can avoid them.
Do you have any other suggestions as to where I should move my investments to in Canada?
Thank you very much.
Warm regards,
CIGA Oscar
Hi Oscar,
A registered RRSP is a Canadian retirement account where all capital gains and interest and dividend earnings accrue on a tax-free basis to the client beneficiary, and are not taxed until the client withdraws amounts from the account (supposedly following retirement when additional income is needed and the client is in a lower tax bracket). The shares and other securities in the account are technically owned by a trustee on behalf of the client. Any shares taken out of the account are considered to have been withdrawn from the account and are treated as immediate taxable income to the beneficial client/shareholder. In other words, the only way to convert the shares to certificated form is to withdraw them from the account.
While the brokerage/trustee could technically hold the shares in certificated or direct registration form, they will not do that as a matter of back office policy, because all brokerage securities are held and traded through CDS (the Canadian equivalent of DTC). While large institutional investors may enter into custodial agreements under which certificated securities are held in the custodian’s vault, those arrangements are expensive and used, typically, where the custodial securities were originally issued in certificated form and not eligible to be traded through the book-based system. Even institutional custodians typically hold book-based tradable securities (such as equity shares) in a virtual account with DTC or CDS.
In relation to Credential Direct, you should do your own due diligence but you should bear on mind Jim’s view that all Western institutions are potentially at risk in the era of the ‘bail in’. Jim has advised us to all GOTS and that means exiting the Western system.
Regards,
Peter Mickelberg
Communications Consultant
www.jsmineset.com
http://www.jsmineset.com/2013/07/13/jims-mailbox-1310/
Once again, thanks a million for coming over to Vancouver, I enjoyed your talk tremendously!
I will be moving my investments out of HSBC, and I am trying to find a bank which will allow me to Direct register. I also have an account with http://www.credentialdirect.com/ They tell me they allow direct registration (for $50.00) of my shares in a cash account but on within a TFSA, RRSP or RESP. Does this make sense?
What is your opinion on credential direct? – they are Canadian own, and as far as I can tell they did not take bail out money. I feel the fees from Sprott are a bit steep, so hopefully I can avoid them.
Do you have any other suggestions as to where I should move my investments to in Canada?
Thank you very much.
Warm regards,
CIGA Oscar
Hi Oscar,
A registered RRSP is a Canadian retirement account where all capital gains and interest and dividend earnings accrue on a tax-free basis to the client beneficiary, and are not taxed until the client withdraws amounts from the account (supposedly following retirement when additional income is needed and the client is in a lower tax bracket). The shares and other securities in the account are technically owned by a trustee on behalf of the client. Any shares taken out of the account are considered to have been withdrawn from the account and are treated as immediate taxable income to the beneficial client/shareholder. In other words, the only way to convert the shares to certificated form is to withdraw them from the account.
While the brokerage/trustee could technically hold the shares in certificated or direct registration form, they will not do that as a matter of back office policy, because all brokerage securities are held and traded through CDS (the Canadian equivalent of DTC). While large institutional investors may enter into custodial agreements under which certificated securities are held in the custodian’s vault, those arrangements are expensive and used, typically, where the custodial securities were originally issued in certificated form and not eligible to be traded through the book-based system. Even institutional custodians typically hold book-based tradable securities (such as equity shares) in a virtual account with DTC or CDS.
In relation to Credential Direct, you should do your own due diligence but you should bear on mind Jim’s view that all Western institutions are potentially at risk in the era of the ‘bail in’. Jim has advised us to all GOTS and that means exiting the Western system.
Regards,
Peter Mickelberg
Communications Consultant
www.jsmineset.com
http://www.jsmineset.com/2013/07/13/jims-mailbox-1310/