A Guaranteed Investment Certificate (GIC) is a secure Canadian investment where your principal is protected, and you earn a fixed or variable rate of interest over a specific term.
When moving your portfolio to ModernAdvisor, you may wonder if you can move your GIC "as-is" or if you have to wait for it to finish its term.
Can I Transfer my GIC "In Kind"?
The short answer is: It depends on the GIC. An "in-kind" transfer means moving the investment exactly as it is without selling it. This is generally possible if our custodian has a dealer agreement with the financial institution that issued your GIC.
Generally Transferable (In-Kind)
Third-Party or Brokered GICs: If you bought your GIC through an independent broker or a platform that offers GICs from various issuers (like Home Trust, or EQ Bank), these are typically transferable.
Non-Proprietary GICs: Any GIC where the issuing bank allows external dealers to hold the certificate.
Usually NOT Transferable (Must be Liquidated)
Proprietary Bank GICs: Many major banks issue GICs that are "locked" to their own internal systems. They cannot be held by an outside custodian.
Market-Linked or Index-Linked GICs: These are complex contracts tied to the specific bank's performance and almost always require staying at the original institution until they mature.
Credit Union GICs: Many smaller credit unions do not have the necessary dealer agreements to transfer certificates to external platforms.
How to Handle a GIC Transfer
If your GIC cannot be transferred in kind, follow these steps to ensure a smooth transition:
Check for Maturity: Most GICs are "non-redeemable," meaning you cannot break them early. You must wait until the maturity date to move the funds.
Turn Off Auto-Rollover: Contact your current bank and instruct them not to renew the GIC. Ensure it is set to "payout to cash" upon maturity.
Submit Paperwork Early: You can send your transfer forms to ModernAdvisor up to one month before the GIC matures. We will hold the request and submit it to your bank so the funds move immediately after the GIC matures.
Provide a Statement: When setting up your transfer, please share a recent statement showing the GIC's issuer, maturity date, and certificate number. We can then help confirm if an in-kind transfer is an option.