The purpose of this compliance bulletin is to communicate a new policy setting the maximum dollar limit of $249,999 when using a Pre-Authorized Debit Form (“PAD”) to settle a client purchase. This brings the PAD payment option into line with the existing procedures that require all client cheques for $250,000 and over to be certified or alternately settled by bank draft along with proof of origin.
Should an uncertified cheque or PAD be submitted for an amount of $250,000 or over, any related trades will be cancelled and placed upon receiving confirmation that the funds have cleared the client’s bank account. Any costs associated with cancelling the trade or to compensate a client for the best trade execution (original trade date vs. actual trade date) are charged to the advisor.
Please contact your Regional Compliance Officer or Branch manager if you have any questions in this regard.
