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Regulatory and Compliance Solutions

Rapidly evolving regulatory landscape and new legislations imply that Unitrax® must undergo a quick overhaul to incorporate changes for ensuring compliance. At LTI Canada, we constantly track legislative and regulatory changes to meet your business needs, in line with the latest industry standards. We release overview documentation and conduct meetings on a monthly basis to keep you updated about projects that are underway to upgrade Unitrax® for boosting compliance.

We work closely with Canada Revenue Agency (CRA) and Revenue Québec (MRQ) to implement yearly updates to tax forms, tax calculations and rule changes in a streamlined manner. Unitrax® also completely complies with other important legislations like the Foreign Account Tax Compliance Act (FATCA) and Organization for Economic Co-operation and Development Common Reporting Standards (OECD CRS).

Canada has various product-specific “federal” regulatory bodies governing the operations of fund manufacturers and dealers. Some of these include Mutual Funds Dealer of Canada (MFDA)/Autorité des marches financiers (AMF), Investment Industry Regulatory Organization of Canada (IIROC), Office of the Superintendent of Financial Institutions (OSFI) and Canadian Council of Insurance Regulators (CCIR). These bodies issue guidelines and advisories, as well as recommend best practices within their industries. These recommendations and guidelines are reviewed with clients and Unitrax® is updated to ensure there are no compliance issues.

LTI Canada also interacts with industry thought leaders and think tanks such as the Investment Funds Institute of Canada (IFIC), Canadian Life and Health Insurance Association (CLHIA), and Canadian Capital Markets Association (CCMA) on a regular basis. This helps us tailor our platform to meet the pressing needs of the industry, for instance, Federal and Provincial Budget changes.

Details

Full Cost Disclosure

CRM2 was a regulatory initiative designed to provide investors with greater visibility into investment performance and costs. It brought with it a systemic changes that were implemented which included pre-trade disclosure, verbal discussions on fees and other costs, and written post-trade disclosure for debt security transactions including the annual yield as well as the total dollar compensation. The regulation mandated fund companies enhance their clients’ account statements to show information such as market value of fund, opening balance, and funds carrying Deferred Sales Charge (DSC).

To ensure that Unitrax® was compliant with CRM2, we worked very closely with our clients to identify functionalities that are relevant to their business process needs.

With the new proposed Full Cost Disclosure (CRM3 and CCIR IVIC Recommendations) we are again working with our Insurance and Securities clients to ensure that their needs are met and that they can fully comply with the challenges that the new Full Cost Disclosure requirements bring.

LTI Canada’s compliance team also participated in many industry group discussions around Full Cost Disclosure including IFIC and fundserv, as well as holds regular LTI Client meetings with all our clients to discuss.

FATCA

Unitrax® has continuously been enhanced to ensure it complies on an annual basis with the timelines set out by the CRA and the Department of Finance (DOF) since the inception of FATCA in Canada. The platform automatically recognizes the line of business being administered and reports the correct information to the CRA through XML filing.  Unitrax® has in-built functionalities to generate reports on configurable amounts, account types, and investor types, and also keeps track of changes in circumstances.

OECD’s CRS

The Organization for Economic Co-operation and Development (OECD) developed the Common Reporting Standard (CRS) to combat global tax evasion and improve tax compliance. The CRS became effective in Canada on July 1, 2017, requiring financial institutions to provide customer information to the CRA that includes account holder’s personal details, TIN, account details, and payments credited to the account for account holders that met the CRS residence criteria.

LTI Canada has incorporated various changes in Unitrax® across functions like due diligence, administration, and reporting to comply with the Part XIX of the Income Tax Act regarding the CRS.

Our compliance team actively participates in industry forums to discuss the implications of the CRS and best practices for superior compliance.

Investment Vehicles Supported

Unitrax® supports multiple investment vehicle types: Segregated Funds, Mutual Funds, Guaranteed Investment Certificates (GIC), Daily Interest Investments (DII), Payout Annuities, Guaranteed Withdrawal Benefits (GWB), Guaranteed Investment Accounts (GIA), Pooled Funds, Limited Partnership, Linked Notes, Daily Interest, as an example. Each of these investment vehicles have built in configuration rules to allow you to determine the types of funds and the guidelines to be configured.

The offering encompasses modules that strictly adhere to the different legislative, regulatory and business rules for each product while providing added flexibility that allows clients to issue customized plans for their market.