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Working With Client

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  • 24. Canadian Taxation
    Overview of Canadian taxation in relation to investment income, tax deferral plans, tax-free savings plans, and basic tax planning strategies. Learn about different types of income, pension plans, and registered plans.
    • 24.1 Introduction
      Learn about the importance of understanding the basics of taxation for investment advisors in Canada. This chapter covers the types of investment income and their different tax treatments, along with strategies for optimizing after-tax returns.
    • 24.2 Canadian Taxation System
      Detailed guide on the Canadian Taxation System, covering tax treatment of interest income, dividends, and capital gains or losses.
      • 24.2.1 Calculating Income Tax
        Understanding the process of calculating income tax in Canada, including steps on taxable income, allowable deductions, tax credits, and net tax payable.
      • 24.2.2 Types Of Income
        Learn about the four types of income and how they are taxed under Canadian tax laws. Detailed insights on Employment Income, Business Income, Income from Property, and Capital Gains/Losses.
      • 24.2.3 Taxation Of Income
        Comprehensive guide on the taxation of income in Canada, detailing federal and provincial tax rates, calculations, and illustrations.
      • 24.2.4 Taxation Of Income From Property
        Learn about the taxation of income from property including registered plans, interest income, dividends from taxable Canadian corporations, and dividends from foreign corporations. Discover the intricacies of capital gains, and methods to minimize taxable investment income.
      • 24.2.5 Tax-deductible Items Related To Investment Income
        Explore the various tax-deductible expenses related to investment income, including allowable carrying charges and those you cannot deduct. This guide provides comprehensive details to help you make informed decisions regarding tax deductions.
    • 24.3 Capital Gains And Losses
      Learn about calculating capital gains and losses, understanding the terminology, and the tax implications based on CRA definitions in our detailed guide on Capital Gains and Losses.
      • 24.3.1 Disposition Of Shares
        Comprehensive guide on determining capital gains or losses when disposing shares, principles of adjusted cost base, and considerations for warrants, rights, and stock dividends in Canadian taxation.
      • 24.3.2 Disposition Of Fixed-income Securities
        An in-depth guide to understanding the disposition of fixed-income securities, covering capital gains, accrued interest, and practical examples.
      • 24.3.3 Capital Losses
        Understand how capital losses are calculated, the rules for worthless and superficial losses, and their implications in Canadian tax law.
      • 24.3.4 Tax Loss Selling
        Learn about tax loss selling, a strategy used to minimize taxes by selling securities at a loss and offsetting capital gains. Find details on timing, calculations, and considerations for making this investment decision.
    • 24.4 Tax Deferral And Tax-free Plans
      Explore different tax deferral and tax-free plans available in Canada, their benefits, usage, and key aspects. Detailed explanation and FAQs included.
      • 24.4.1 Registered Pension Plans
        Comprehensive overview of Registered Pension Plans (RPPs) in Canada, detailing various components like Pension Adjustments, types of plans including Money Purchase Plans and Defined Benefit Plans, and critical tax implications.
      • 24.4.2 Registered Retirement Savings Plans
        Learn about Registered Retirement Savings Plans (RRSPs) including the types, contributions, withdrawals, and tax implications.
      • 24.4.3 Registered Retirement Income Funds
        Learn about Registered Retirement Income Funds (RRIF), including their features, rules for withdrawals, tax implications, and investment options.
      • 24.4.4 Deferred Annuities
        Learn all about deferred annuities, their features, tax implications, and the benefits they provide to investors. Gain comprehensive insights into how these financial products fit into your broader investment strategy.
      • 24.4.5 Tax-free Savings Accounts
        Learn about Tax-Free Savings Accounts (TFSAs), including basic rules, taxation, qualified investments, contributions, and withdrawals. Discover how they can fit into your financial planning.
      • 24.4.6 Registered Education Savings Plans
        A detailed guide on Registered Education Savings Plans (RESPs) explaining their features, types, tax implications, contribution limits, and additional benefits like the Canada Education Savings Grant (CESG).
      • 24.4.7 Pooled Registered Pension Plans
        An in-depth guide on Pooled Registered Pension Plans (PRPPs) covering eligibility, benefits, administration, and comparisons with other registered investments like RRSPs.
    • 24.5 Tax Planning Strategies
      Effective tax planning is crucial for investors aiming to maximize their after-tax return. This section explores key strategies and considerations to minimize tax liability within legal parameters.
      • 24.5.1 Splitting Income
        Explore the strategy of income splitting to manage taxes efficiently by shifting income from higher to lower tax brackets within family structures.
      • 24.5.2 Transferring Income
        Learn about the intricacies of transferring income within family members and the tax implications it can entail under Canadian tax laws, including exceptions and attribution rules.
      • 24.5.3 Paying Expenses
        Optimize tax savings by strategically managing family expenses and investment contributions based on spousal incomes.
      • 24.5.4 Making Loans
        Understand how making loans within a family can be effective for tax purposes by following the specific rules and regulations set by the CRA. Learn about the prescribed rates, interest, and how to maximize the benefits.
      • 24.5.5 Discharging Debts
        Understand the concept of discharging debts in the context of tax strategies involving spouses and non-arm’s length individuals. Learn the rules, strategies, and examples that demonstrate how this can be utilized for tax savings.
      • 24.5.6 Canada And Quebec Pension Plan Sharing
        Comprehensive guide on Canada and Quebec Pension Plan sharing, including eligibility, process, and benefits. Learn how to split pensions with your spouse.
      • 24.5.7 Gifting
        Explore the implications of gifting investments to adult children or parents, including a case scenario and related key terms.
    • 24.6 Summary
      Comprehensive summary and key takeaways on Canadian taxation, including world and Canadian-source income, tax deferral plans, income splitting, and tax planning strategies.
  • 25. Fee-based Accounts
    Chapter 25 provides a comprehensive overview of fee-based accounts in the Canadian Securities Course, exploring the different types of managed and unmanaged fee-based accounts, along with their advantages and disadvantages.
    • 25.1 Introduction
      An overview of the evolving fee-based account model in the securities industry, highlighting changes from traditional advisor/client relationships to asset-based fee structures.
    • 25.2 Overview Of Fee-based Accounts
      A comprehensive guide to fee-based accounts highlighting their advantages, disadvantages, and the growing demands of high-net-worth clients.
    • 25.3 Managed Fee-based Accounts
      Comprehensive guide to managed fee-based accounts, comparing their features, advantages, and disadvantages. Includes details on taxation, fee structures, and various service levels within managed fee-based accounts.
      • 25.3.1 Exchange-traded Fund Wraps And Mutual Fund Wraps
        A comprehensive guide to understanding exchange-traded fund (ETF) wraps and mutual fund wraps within managed accounts, explaining their structures, benefits, and management approaches.
      • 25.3.2 Advisor-managed Accounts
        Comprehensive guide on advisor-managed accounts in the Canadian Securities Course. Understand the benefits, types, and tax implications of advisor-managed accounts.
      • 25.3.3 Separately Managed Accounts
        A comprehensive guide to Separately Managed Accounts (SMAs) for Canadian investors. Understand the benefits, management structures, and roles of sub-advisors and overlay managers.
      • 25.3.4 Household Accounts
        Explore Household Accounts in the Canadian Securities landscape, detailing their structure, benefits, and the strategic allocation for optimal tax management across a family’s holdings.
      • 25.3.5 Private Family Office
        Learn about the structure, benefits, and operation of Private Family Offices for high-net-worth individuals.
      • 25.3.6 Documentation For Managed Accounts
        Explore comprehensive documentation for managed accounts, complying with IIROC rules, client agreements, and regular reviews. Learn best practices to ensure fair investment allocation and regulatory compliance.
    • 25.4 Non-managed Fee-based Accounts
      Learn about the different types of non-managed fee-based accounts, understand their characteristics, and uncover their benefits and considerations.
    • 25.5 Summary
      Overview of key aspects and frequently asked questions about fee-based accounts including their types, services offered, and regulatory requirements.
  • 26. Working With Retail Client
    Learn the structured approach to financial planning for retail clients, focusing on the financial planning process, the life cycle hypothesis, and ethics and standards of conduct within the securities industry.
    • 26.1 Introduction
      Understand the critical role of financial planning and wealth management services in the investment landscape. Learn about the importance of ethics, codes of conduct, and the structured financial planning approach to effectively meet clients' goals.
    • 26.2 Financial Planning Approach
      A comprehensive guide on the steps in the financial planning process. Learn how to assess your clients' financial and personal situations, integrate expert recommendations, and create achievable, realistic financial plans.
      • 26.2.1 Steps In Financial Planning Process
        Learn the essential six-step financial planning process including establishing client-advisor relationships, collecting data, analyzing information, recommending strategies, implementing plans, and conducting periodic reviews.
    • 26.3 Life Cycle Hypothesis
      Understanding the Life Cycle Hypothesis is crucial for grasping a client’s investment needs influenced by age-related factors such as risk tolerance, financial goals, and personal circumstances.
      • 26.3.1 Stages In Life Cycle
        Comprehensive guide on the different stages in the life cycle of investors including early earning years, family commitment years, mature earning years, nearing retirement, and retired. Key insights on asset allocation, risk tolerance, and financial goals at each stage.
      • 26.3.2 Summarizing Life Cycle Hypothesis
        Comprehensive guide on the Life Cycle Hypothesis as per the Canadian Securities Course, summarizing various stages of financial life with investment goals, personal, and financial circumstances.
    • 26.4 Ethics And Advisor’s Standards Of Conduct
      An in-depth guide on the role of ethics and standards of conduct in the securities industry and their importance in building trust and confidence.
      • 26.4.1 Ethical Decision-Making
        Explore the critical facets of ethical decision-making in the securities industry, its integral principles, and the step-by-step process for acting ethically when rules fall short.
  • 27. Working With Institutional Client
    Comprehensive guide to understanding the institutional marketplace, examining buy side and sell side firms, trading practices, responsibilities of market participants, and advancements in trading technology.
    • 27.1 Introduction
      Explore the roles and responsibilities of retail and institutional investment dealers in the Canadian Securities market. Understand the different styles and guidelines they follow to serve their clients' needs, and stay updated with current trends.
    • 27.2 Sell Side And Buy Side Of Market
      Explore the distinctions between the sell side and buy side within the institutional marketplace. Learn about the roles, services, and interplay between investment dealers and various types of investors.
      • 27.2.1 Sell Side
        Comprehensive guide covering the Sell Side of Canadian investment dealers, including types such as full-service dealers, investment banking boutiques, and self-directed dealers.
      • 27.2.2 Buy Side
        Explore the institutional clients—corporate treasuries, insurance companies, pension funds, mutual funds, hedge funds, endowments, trusts, and investment management firms—that represent the buy side in the financial markets.
      • 27.2.3 Direct Electronic Access
        This section covers Direct Electronic Access (DEA), including its historical context, risks, regulatory measures, and the roles and responsibilities of institutional portfolio managers and traders.
Thursday, July 4, 2024