Pre-Authorized Debits

On February 28, 2010, the Canadian Payments Association introduced Rule H1 to protect consumers from unauthorized debits from their account and provide recourse should it occur.

Manufacturers have various methods of incorporating the provisions of  Rule H1 into their current procedures including leveraging account applications, creating stand-alone agreements, and simplifying prospectuses and transaction confirms.

The only process not covered is when a distributor instructs a mutual fund manufacturer to set up a direct PAD with their client on a nominee account. Fundserv has developed an agreement to allow for this process to continue.

The distributor must show they have provided the client with their rights and recourses regarding the debit plan under Rule H1. The distributor must also show the mutual fund manufacturer is indemnified from that recourse, provided the mutual fund manufacturer has acted only upon the instruction provided by the distributor.

CPA Rule H1 (PAD) Distributor Acknowledgement and Indemnity Form

Canadian Payments Association Rule H1 (Pre-Authorized Debits)

Code Manufacturers who are not participating/Date

CodeManufacturerDate
BTBB2B Trust
TWCBellwether Investment Management Inc.Feb. 26, 2010
PALPalos management Inc.Feb.26, 2010
EQUThe Equitable Life Insurance Company of Canada
VAAVan Arbor Asset Management Ltd. Feb. 28, 2010

Code Distributors who are participating/Date

CodeDistributorDate
9721Assante Capital ManagementMar. 4, 2010
9815Assante Financial ManagementMar. 4, 2010
7606Assante Financial ManagementMar. 4, 2010
7646Assante Financial ManagementMar. 4, 2010
9334Assante Financial ManagementMar. 4, 2010
9185BMO Nesbitt BurnsMar. 8, 2010
3369Botica Capital Management Inc.Mar. 23, 2010
7770Botica Capital Management Inc.Mar. 23, 2010
9335Canacord Financial LtdMay 20, 2010
7782Canacord Financial LtdMay 20, 2010
7799Canacord Financial LtdMay 20, 2010
7723CWM Funds Inc.Mar. 8, 2010
7802Desjardins Cabinet Services FinanciersMay 20, 2010
9525Dundee Private Investors Inc.Mar. 12, 2010
9212Dundee Securities CorpMar. 12, 2010
ECEMECEM Penson FSC Inc.Feb. 26, 2011
9844Edward JonesFeb. 28, 2010
9177Global Securities Corp.Mar. 12, 2010
9091Haywood Securities Inc.Mar. 1, 2010
7660Independent Accountants Investment GroupFeb. 26, 2010
7867Independent Accountants Investment GroupFeb. 26, 2010
3744Keybase Financial Group Inc.Feb. 26, 2010
9330Keybase Financial Group IncFeb. 26, 2010
9744Keybase Financial Group Inc.Feb. 26, 2010
9595Keybase Financial Group Inc.Feb. 26, 2010
9582Leede Financial MarketsFeb. 25, 2010
3360Legacy Investment Management Inc.Mar. 1, 2010
7719Legacy Investment Management Inc.Mar. 1, 2010
9140MacDougall, MacDougall & MacTier Inc. Feb. 26, 2010
MRCCMRS Correspondent Corp.Feb. 26, 2011
MRSMRS Inc.Feb. 26, 2011
7559MRS Securities Inc.Feb. 26, 2010
MSSIMRS Securities Inc.Feb. 26, 2011
7695NBCN Inc.Feb. 25, 2010
7858NBCN Inc.Feb. 25, 2010
9034NBCN Inc.Feb. 25, 2010
9135NBCN Inc.Feb. 25, 2010
9139NBCN Inc.Feb. 25, 2010
9275NBCN Inc.Feb. 25, 2010
9752NBCN Inc.Feb. 25, 2010
9822NBCN Inc.Feb. 25, 2010
9835NBCN Inc.Feb. 25, 2010
9077NBCN Inc.Feb. 25, 2010
9195Odlum BrownMar. 1, 2010
9955Olympian Financial Inc.Apr. 6, 2010
3491Olympian Insurance Inc.Apr. 6, 2010
7653Penson FSC Inc.Feb. 26, 2010
3445Qtrade Asset Management Inc.Mar. 17, 2010
7753Qtrade Asset Management Inc.Mar. 17, 2010
3464Qtrade Securities Inc.Mar. 17, 2010
7815Qtrade Securities Inc.Mar. 17, 2010
9485Raymond JamesApr. 13, 2010
9190RBC Dominion Securities Inc.Mar. 1, 2010
9155Scotia CapitalMar. 1, 2010
7689Scotia Securities Inc.Feb. 26, 2010
7641Shah Financial PlanningMar. 2, 2010
9001Union SecuritiesMar. 3, 2010
9306Valeurs Mobilières Banque LaurentienneNov. 20, 2013
9356Valeurs Mobilieres DesjardinsMay 20, 2010