CI Ops - Systematic Plan (AWD/IFE)

An AWD can also be referred to as a

• SWP - Systematic Withdrawal Plan

• AR - Automatic Redemption

• SR - Systematic Redemption

• AWP - Automatic Withdrawal Plan

An AWD cannot be set up on a RRSP.

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Answer explanation

An AWD can be set up on a RRSP however, it will incur withholding tax.

Which two frequencies are not permitted on income plans?

• Monthly

• Bi-weekly

• Quarterly

• Weekly

Match the following

• Twice per year

• Semi-monthly

• Every two weeks

• Bi-weekly

• Twice per month

• Semi-annually

• Every two months

• Bi-monthly

Which of the following do NOT allow AWD set up?

• RESP

• Locked-in plans

• LSIF

• RIF

Answer explanation

RESP: Redemptions are meant for school purposes, any redemptions not for school purposes have to repay the grant.

Locked-in Plans: Redemptions are not permitted.

LSIF: Funds are restricted.

In order to set up an AWD on a nominee held account, we require

• Client authorization

• Dealer authorization

• Nominee authorization

• Advisor authorization

A special WHT can be applied to AWDs as long as it is a whole number percentage and between

• 1% - 99%

• 10%, 20% or 30%

• Up to 100%

• We cannot apply a special WHT.

The default AWD amount for income plans is __

The default fund split for AWDs on income plans is

• Equally

• FEL funds only

• FEL fund and DSC free/matured units

• PRA

The default frequency for AWDs set up on income plans is

• Monthly

• Quarterly

• Semi-Annually

• Annually