ivari further strengthens its strategic focus on Life business

On November 29, 2019 the following change was made under our investment product line of business: ivari Guaranteed Investment Fund (GIF), Guaranteed Interest Account (GIA) and Daily Interest Account (DIA), products were discontinued to new policies and new sales.

We are making additional changes to our investment product offering to further strengthen our strategic focus on the life and protection business and better position the company, our advisors and distributors.

Effective immediately:

All existing segregated fund (including ivari Guaranteed Investment Funds (GIF), Guaranteed Interest Account (GIA) and Daily Interest Account (DIA) products that are available under the investment product line of business:

  • No new Pre-Authorized Chequing (PAC) plans can be established (if applicable).
  • No increases to the PAC plan deposit amount or frequency will be accepted.

In addition, for ivari Guaranteed Investment Funds (GIF) segregated fund product, all combined deposits may not exceed $25,000. This does not include PAC deposits.

Effective as of the close of business on March 2, 2020:

For all existing segregated fund, GIA and DIA, products that are available under the investment product line of business:

  • If applicable, additional deposits will no longer be accepted.
  • Existing PAC plans will be stopped.

If your client owns any one of these products, we will continue to honour the guarantees set out in the policy, and the terms of their contract will remain unchanged. We will continue to provide customer service for these products.
ivari ’s Single Premium Immediate Annuity (SPIA) remains available for new sales with no changes at this time.

Please see links below for details of the change by product:

- Clients who hold a segregated fund contract, with or without GIA/DIA, will receive a policyholder letter in their 2019 year-end statement.

- Clients who hold GIA/DIA, with or without segregated funds, will receive a policyholder letter in their 2019 year-end statement.

The following table summarizes the product status as of March 3, 2020.

Product(s) New Sales/Policies Deposits to Existing Contract Set up of New PAC Existing PAC or Change to Existing PAC
ivari GIF Five for LifeTM imaxx Guaranteed Investment Funds GROWSafe3TM GROWSafe2TM *GROWSafeTM *includes GS299, GS199, GS194 Closed Closed Closed Closed
Interest Accumulation^ (GIA and DIA) and Harvest Closed Closed Closed Closed

^ Registered Retirement Income Fund (RRIF)/Life Income Fund (LIF)

Advisors Q&A: Investment Product Offering

This Q&A addresses changes to ivari’s segregated fund, Guaranteed Interest Account (GIA) and Daily Interest Account (DIA) products.

Q1: Will policyholders in these contracts be notified?

A1: Yes. A client letter detailing the changes will be included with the policyholder’s December 31, 2019 statement. Some affected policyholders (RRIF/LIF GIA DIA) will receive a separate letter.

Q2: Will ivari accept a deposit or a PAC deposit on March 2nd as this is also the last day for the 2019 RRSP contribution?

A2: Yes*, we will accept a deposit or a PAC deposit on March 2, 2020 and then any deposits or PAC after this date will be stopped.
*For products where additional deposits and/or PAC are currently permitted.

Q3: What is the cut-off date for pending T2033 transfer form (or equivalent registered transfer form), for additional deposits*?

A3: Funds must be received at our Head Office (500-5000 Yonge Street, Toronto M2N 7J8) by no later than March 31, 2020.
*For products where additional deposits are currently permitted.

Q4: What if I have sent a T2033 transfer form (or equivalent registered transfer form) for ivari GIF segregated fund contract and the amount was in excess of $25,000?

A4: If both the T2033 (or equivalent registered transfer form) and ivari’s Financial Service Form (IP416) were completed and dated on or before the announcement on January 8, 2020, the transfer will be accepted

Q5: What if $25,000 had been deposited into the ivari GIF segregated fund contract between January 2, 2020, and before the announcement on January 8?

A5: The $25,000 deposit limit for ivari GIF is starting on January 8, 2020.

For example, if $50,000 had been deposited into an ivari GIF contract on January 2, 2020, prior to January 8, the policyholder would still be allowed to make a subsequent deposit of up to $25,000 on or before March 2, 2020.

Q6: Do PAC deposits count towards the $25,000 limit for ivari GIF segregated fund contract in 2020?

A6: No. The $25,000 limit is with respect to additional deposits and would exclude PAC deposits.

For example, if the monthly PAC is $1,000, the total amount of PAC deposits between January 2020 and March 2, 2020 would be $3,000 (assuming that PAC is on the first day of the month). An additional $25,000, up to March 2, 2020 could still be deposited into the impacted contract.

Q7: For segregated funds, if available, is transfer from Deferred Sales Charge (DSC) option to Initial Sales Charge (ISC) option (and vice versa) within the same contract, still permitted?

A7: Yes. Regular rules as per the contract are applicable, i.e moving between funds of different sales charges (i.e. DSC to ISC) is not considered a switch and may trigger surrender fees. This transaction is processed as a withdrawal from the Contract and a subsequent deposit back into the Contract. Guarantees will be impacted.

Q8: For segregated funds, if available, is Dollar Cost Averaging (DCA), within the same contract, still permitted?

A8:  Yes. Policyholders may still request to have scheduled fund switches and regular rules as per the contract are applicable.

Q9: For GIA, if available, are renewals, still permitted?

A9: Yes. Policyholders may still renew their deposit at the end of the investment term.

Q10: What is happening to SPIAs?

A10: No change is being made to our SPIA product at this time.

Q11: What is happening with ivari’s segregated fund line up?

A11: No changes are being made to the fund’s offering at this time. All segregated funds continue to be professionally managed.

Q12: Will there be changes in the administration of segregated fund, GIA, DIA policies?

A12: No. We will continue to administer the segregated fund, GIA and DIA policies.

Client statements, transaction confirmations, tax receipts and other administrative documents will not be changed. For the segregated funds, fund fact pages and fund performance returns will continue to be available on our website.

Note: Ownership changes, Transfer In Kind (TIK), and RRSP to RRIF transfers transactions can still be processed by completing the Transfer of Ownership form (IP1270), Dealer/Nominee Transfer form (IP1186) and the Plan Type Registration Change form (IP421). With these transactions a new policy number will be assigned.

Q13: Will the imaxxGIF transfer program for existing qualified registered products continue?

A13: Yes. The imaxxGIF transfer program is only available for existing registered and locked‐in (i.e. RSP, LIRA, RIF, LIF, PRIF and RLIF) GROWSafe 94, IMS I, II, & III segregated fund contracts. The transfers are processed as a Transfer in Kind (TIK) into a new registered imaxxGIF contract.

At this time there are no plans to change the terms of this transfer program. However, we are continuously reviewing our product offering and programs and may make changes from time‐to‐time.

For further details on the imaxxGIF transfer program, please refer to the ‘Transfer from a Registered Qualified Policy to an imaxxGIF Contract Electronic Kit” (IP903T 12/19).

Q14: Why is ivari making these changes to their investment products?

A14: We are making changes to our investment product offering to further strengthen our strategic focus on the life and protection business. The current economic and competitive environments, in addition to the relatively small size of our investment product business, were the major factors in this decision.

Q15: Who should I contact if I have additional questions?

A15: Please contact the Call Centre at 1-800-846-5970 or send an email to conversation@ivari.ca.