Personal Finance

brokerage offering less intrustive TFSA application?

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  • May 8th, 2015 4:11 pm
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[OP]
Sr. Member
Mar 6, 2007
670 posts
44 upvotes

brokerage offering less intrustive TFSA application?

Is there a online discount brokerage that doesn't need FULL financial and employment information for TFSA trading account?
(Annual gross income, Net liquid assets, Net fixed assets, Total net worth, Employer, Type of Business, Position, Years with this employer, Business Address, etc...) [also want to do a credit checks]

I know regulation may require some employment and personal information, but all that seems too much for just a TFSA account. For Margin and Short accounts, I can understand needing all that.
3 replies
Jr. Member
Jul 28, 2014
123 posts
15 upvotes
Toronto, ON
jmc0 wrote: Is there a online discount brokerage that doesn't need FULL financial and employment information for TFSA trading account?
(Annual gross income, Net liquid assets, Net fixed assets, Total net worth, Employer, Type of Business, Position, Years with this employer, Business Address, etc...) [also want to do a credit checks]

I know regulation may require some employment and personal information, but all that seems too much for just a TFSA account. For Margin and Short accounts, I can understand needing all that.
The account is linked to a SIN as it is specific to you. AML compliance would be required and to verify that the application is not fraudulent, they need to look to confirm the information.
[OP]
Sr. Member
Mar 6, 2007
670 posts
44 upvotes
TKDKidd wrote: The account is linked to a SIN as it is specific to you. AML compliance would be required and to verify that the application is not fraudulent, they need to look to confirm the information.
Thanks for the insight. I don't know enough about the Anti-Money Laundering regulations, but are you saying they need: Annual gross income, Net liquid assets, Net fixed assets, Total net worth, Employer, Type of Business, Position, Years with this employer, Business Address, credit checks, etc... to meet that requirement?
-As to confirm non-fraudulent application and my identity, I can physically bring in-person my SIN card, Driver license, Passport to their branch/office for processing [which I believe was the procedure I had to follow, to activate my pLOC with one of the banks].
Deal Addict
Jan 30, 2012
1674 posts
1068 upvotes
TORONTO
There are a number of things here:

- Identifying you for tax and AML regulations
- Knowing your financial position, experience and objectives to recommend investments. An investment firm has certain obligations when they sell you investments so that they can protect you from yourself.
- Whether you are an insider for any publicly traded companies.

Pretty much everyone will ask those questions when you open a trading account, TFSA or otherwise.

Of course, they're likely to just write it down and tick the boxes that they have complied with their obligations. Not that I'd recommend it, but many people lie...

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