The Non-Resident Account Experience (2024)

Nearly 30 years ago, when I first started in this industry, it was more common for non-residents to open investment accounts in Canada, and the reasons varied as to why these accounts were opened. Some were originally residents of Canada but returned to their homeland for other job opportunities. Some had ties to Canada because their children attended and lived in Canadian schools and universities, and some planned to rejoin their family in Canada for retirement.

Currently, the ability to open non-resident accounts has become more difficult. This is understandable as financial institutions have to fulfill their due diligence and responsibilities as gate-keepers in areas of anti-money laundering (AML) and terrorist financing. Existing and new clients should no longer expect that non-resident accounts will automatically be opened. Even those with existing ties to Canada may not be granted a non-resident investment account.

Individuals should accept that non-resident account standards are dynamic and can differ between financial institutions. Many factors are taken into consideration including one’s citizenship and/or cardholder status, the country that they are residents of, the source of one’s wealth, and the value of their portfolios. An Enhanced Due Diligence process is often performed to review the information received and to request any supporting documents.

Non-resident accounts are also subject to investment requirements and restrictions. Our team only offers discretionarily managed solutions to non-residents. Non-residents are also unable to invest in mutual funds, derivative products, IPOs, nor access margin (leverage).

None of the factors or requirements above are exhaustive. The tremendous amount of caution and due diligence that is performed are in place to protect clients, advisors, the financial institution and the financial system as a whole. If you or a family member may need to consider a non-resident account status, please reach out to a member of our team to review your circ*mstances and considerations.