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 The
Money Management Newsletter: RSP
Planning
I told you to transfer my RRSP/RRIF - What's
the hold up?
By Rob Whipp
Have you ever transferred
an RRSP or RRIF between financial institutions and were left wondering
why the process took so long?
In my experience the speed at
which the transfer of registered funds takes place is directly dependent
on the people involved. Immediately after you sign a transfer request
you are normally removed from the picture after which everything is handled
by other people who may not have as much concern about the timeliness
of the proceedings as you.
Your signed document may not leave
the new, receiving institution immediately as it may go through some record
keeping which creates the initial delay. It is eventually mailed to the
former, releasing institution which may require a few days in transit.
More delays! The company losing the business knows where the funds are
going because the name and address of the receiving institution are on
the transfer form so the natural questions for them are: why are you leaving,why
are you choosing that other company, and what can they do to keep your
money?
At the releasing institution,
staff may try to contact you to persuade you to change your mind figuring
you must have been delirious to want to move your funds. If you work and
they don't have your work number it may be difficult to reach you unless
they have extended hours or someone stays late to reach you at home. Still
more delays! If they can't convince you to keep your money with them the
transfer is usually not done immediately by way of a post dated
cheque but instead is often filed under the investment due date to be
processed then. Again more delays! In many cases the branch may not actually
process the redemption but rather it is forwarded to an administrative
centre which may be in a different city or province. More delays!
| Branch
Staff may try to contact you to persuade you to change your mind figuring
you must have been delirious to want to move your money |
Transfers out are usually
the last items of work to get processed so during busy times these may
get put on the back burner. Since the funds are going to another institution
and not directly to you there may not be any sense of urgency to process
it. More delays! When the redemption is finally processed it is once again
put back in the mail to the receiving institution.
As illustrated above several people
may be involved in RRSP & RRIF transfers none of which have the same
concerns as you over the speed of the transfer, and many days of delay
can occur with each individual as they get around to handling your particular
case.
The best method to significantly
reduce transfer time is to insert yourself and/or your deposit
broker/financial advisor into the process.
First, at the time of signing
the paper work either directly on the transfer form or on an attached
memo include the following words to the attention of the releasing company
"this is my final decision, please don't contact me". (if
it's not your final decision don't initiate the transfer).
Second, either you or someone
else can hand deliver the transfer document to the branch of the releasing
institution and obtain a receipt for it.
Third, instruct the branch that
you will be back on the due date to pick up the cheque which you will
hand deliver to the receiving institution or to your deposit broker/financial
advisor. If you have allowed several days for processing time, having
a cheque available on the due date should not be a problem. It isn't
anyone's business as to why your money is leaving so don't feel obligated
to tell anyone. Also don't feel bad; the releasing institution will
probably charge you a hefty fee. All of the above can be done in a normal
business fashion without alienating anyone at the releasing branch.
However, if any delays occur call daily to stay on top of the situation.
Complain to higher authorities if the delays persist and you feel that
you are getting the run around.
If you were cashing in a regular
GIC your money would be available to you on the due date...your RRSP transfer
should not be any different. These methods might be more difficult if
you work during banking hours, however if you become directly involved
in some fashion I'm sure you'll notice the difference.
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 © , Fiscal Agents Money Management Newsletter
25 Lakeshore Road, Oakville, On L6K 1C6.
(905) 844-7700
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