Swap transaction?
Hello,
I recently sold off a stock that's pretty illiquid from my RRSP as I wanted to buy some more of another stock. Since it was so illiquid my wife decided to take on the shares in her margin account since she's got plenty of excess margin and she already holds the stock anyways so she believes in the company. We were told the next day that the trade wasn't allowed as it's considered a swap transaction by the CRA and we couldn't trade from a registered to non registered account like that and that the trade could be done from margin to margin. That kind of defeats the purpose of me freeing up some funds in my RRSP. Can we do an RRSP to RRSP or TFSA transaction instead? Would a registered to registered cross be allowed?
And just to be clear i'm not selling to her at a discount or anything. Stock has been trading at 52 cents for the last week and that's what we did our transaction at. I asked the gentleman at my brokerage but his out of office was on as he left early on Friday and won't be in until Monday. Was hoping I could get some clarification on here before I reached out to him Monday morning.
Thanks!
I recently sold off a stock that's pretty illiquid from my RRSP as I wanted to buy some more of another stock. Since it was so illiquid my wife decided to take on the shares in her margin account since she's got plenty of excess margin and she already holds the stock anyways so she believes in the company. We were told the next day that the trade wasn't allowed as it's considered a swap transaction by the CRA and we couldn't trade from a registered to non registered account like that and that the trade could be done from margin to margin. That kind of defeats the purpose of me freeing up some funds in my RRSP. Can we do an RRSP to RRSP or TFSA transaction instead? Would a registered to registered cross be allowed?
And just to be clear i'm not selling to her at a discount or anything. Stock has been trading at 52 cents for the last week and that's what we did our transaction at. I asked the gentleman at my brokerage but his out of office was on as he left early on Friday and won't be in until Monday. Was hoping I could get some clarification on here before I reached out to him Monday morning.
Thanks!