In search of the lost RRSP

&Looking for the lost RRSP


Misplacing an RRSP is not an easy task. We are certainly in front of an exploit, but none of the protagonists seems well in the story of the lost RRSP reported Monday in Le Journal . 

IG Wealth Management (Investors Group), entrusted with more than $64,000 by a former police officer, is unable to trace much of the money.  

We wonder about the role of advisors, who do not shine with their professionalism.  

National Bank may have nothing to be ashamed of, but the institution would no doubt have preferred not to see its name associated with this mess. 

And the client! If there is one indisputable fact in this story, it is that the victim was a little negligent. 

The rest of the chain is not cleared of this, on the contrary , the AMF is currently looking into the case. 

AMF investigation 

The former police officer filed a complaint with the AMF, that's what had to be done. There was a mess. Investigators from the Autorité des marchés financiers are familiar with tobacco, as they say, and their arrival on the scene will encourage the two financial institutions to increase their research efforts.  

The investigation will be complicated by the 27 years between the mailing of the checks and the filing of the complaint, as well as the destruction of data at Investors Group, which was within its rights to do so. 

< strong>The story in a nutshell 

To sum up: when he left the Laval police department in 1995, Richard Daigneault recovered the money from his pension plan. He chose Investors Group to manage his nest egg. Two checks were sent by Ville de Laval to the financial institution, one for more than $7,000 intended for a locked-in retirement account (LIRA) and another for some $57,000 must be placed in a Registered Retirement Savings Plan (RRSP).  

In 1999, the CRI was transferred to First Marathon, a firm acquired by National Bank. The account is then worth $10,270. The client claims not to have authorized this transfer. Regardless, that money was not lost. 

Did the RRSP follow? Mystery! The victim has no RRSP account statement before or after 1999, and National Bank has no information about an RRSP that may have belonged to Richard Daigneault. 

Required to retain account information for at least seven years after closure, Investors Group has destroyed pre-transfer RRSP data, if any.  

In all those years, the ex-policeman only asked Investors Group for accounts once, in 2013. He got information about the locked-in retirement account, but no clue about the RRSP. And it is today that he reacts.  

Nebulous points 

Several elements remain to be clarified. There is evidence that a check for more than $57,000 was issued and sent to Investors Group, but there is no indication that it was paid into an RRSP in the name of the ex-police officer. Has the account only been opened?  

I would point out that the money from the pension plans is still being transferred by mail, by check, in 2022. In the event that we busy, is he lost somewhere? 

Was it deposited into someone else's account? I am told that it happens, but that these errors are quickly detected, either by employees assigned to verifications, or by the advisor, or by the client.

If the RRSP really existed , would it have evaporated at the time of the transfer to the National Bank, in 1999? It would be very surprising if he did not follow the CRI.

What was explained to me is that it is impossible to transfer an RRSP or a LIRA without the signature of a client. This is a heavy operation initiated by the representative of the institution that will receive the funds. Where is it?  

If the RRSP has been transferred, there must be a record at the Canada Revenue Agency (CRA). 

The account is registered and tracked by the CRA.  

Did the former police officer disburse the money from his RRSP? 

He swears not. Could the account then have been emptied by someone else? In this regard, the CRA could still enlighten us. If that had been the case, Mr. Daigneault would remember having been taxed by the taxman. Otherwise, there are tax slips in his file.  

My hypothesis is that the RRSP never existed, that the money was lost from the start during the transfer by check. The Autorité des marchés financiers will be able to tell us, it must find the trace of this money.  

What would be a happy ending is that we discover the Fully Invested RRSP After 27 Years of Appreciation! 

Clients who forget about their investments typically experience the best returns. With an average return of 7% per year, the ex-policeman would get his hands on $350,000! (We're dreaming, because part of it would be eaten up by management fees, around 2%.) 

Moral of the story, it's good to forget your portfolio, but not too much when same.

À the search for the lost RRSP