CFCL General information - Canada
CFCL eligible fund types
Register market
The following types of investment funds exist in Canada:
- Funds constituted as trusts (including sub-trusts) - the investment position is usually referred to as a "Unit", which represents the rights of a beneficiary of the trust.
- Funds constituted as corporations - the investment positions take the form of shares (including “corporate class” funds where a separate pool of assets is held for each corporate class of shares and each such separate pool and class of shares is treated as a separate fund).
- Funds constituted as limited partnerships - the investment positions take the form of limited partnership units.
CSD link
Please refer to the CBL Market Link Guide – Canada for more information about funds available via the CSD link.
CSD-eligible funds
CSD-eligible investment funds in Canada are eligible for settlement in CDS and DTC.
Exchange Traded Funds (ETFs)
Listed ETFs have the same settlement process as listed equities in CBL.
Custody chain and depository
Type of link | Indirect link through Royal Bank of Canada to:
Indirect link through Royal Bank of Canada to:
|
CSD (as CEU’s and CBL’s depository) | Custodian (as CBL’s depository) | CBL (as CFCL’s depository) | |
Name | CDS | Royal Bank of Canada | Clearstream Banking S.A. |
FATCA GIIN | n/a | G6CADL.00003.ME.124 | N1V1GJ.00000.LE.442 |
LEI | 549300BMUBP6YOC66N50 | ES7IP3U3RHIGC71XBU11 | 549300OL514RA0SXJJ44 |
Country of incorporation | Canada | Canada | Luxembourg |
Account type | Omnibus | Omnibus | Segregated a |
Legal Account name/holder | Royal Bank of Canada (RBC) | Clearstream Banking S.A. | Clearstream Fund Centre S.A. |
a. For the avoidance of doubt, CFCL will open an account at the depository for each CFCL account opened by the client.
Depository
Depository | CSD/Local custodian/Agent |
CBL | RBC Investor & Treasury Services1 155 Wellington Street West Street Level Toronto, Ontario M5V 3L3 Canada |
Operational arrangements
This section describes the operational arrangements of the Canada market:
Domestic Market | Register Market | Remarks | ||
For CFCL clients (link to CEU through CBL) | For CFCL clients (link to CSD/Royal Bank of Canada) | |||
Settlement in T2S | n/a | n/a | n/a | |
Settlement free of payment | Yes | Yes | Yes | |
Settlement against payment | Yes | Yes (EUR only) | Yes | Eligible settlement currencies (between CEU, CBL and CFCL counterparties only): AUD, CAD, CHF a, CNY, CZK, DKK, EUR, GBP, HKD, HUF, JPY, MXN, NOK, NZD, PLN, SEK, SGD, TRY, USD and ZAR. |
Settlement against payment in central bank money | Yes | CAD: The central bank, Bank of Canada, does not hold accounts for deliveries against payment settlement for individual clients. The clearing and settlement system for debt and equities in Canada (CDSX) nets payment obligations between CDS and participants such as RBC that are then settled at the end of the day with payments made through the Large Value Transfer System (LVTS) to the CDS settlement account at the Bank of Canada. CBL holds a cash account at the custodian. USD: Settlement against payment in USD is facilitated through RBC’s custodian, Bank of New York Mellon. | n/a | |
Short selling of entitlement | No | No | n/a | Short selling of income or corporate actions proceeds is not authorised for settlement in CFCL. Please refer to CFCL Client Handbook. |
Settlement penalty fees | Yes | Yes | n/a | |
Partial settlement | No | No | n/a | |
Settlement with Euroclear | Yes | Yes | n/a | |
Allegements | Yes | Yes | n/a | |
Registered securities | Yes | Yes | n/a | |
Proxy voting | Yes | Yes | n/a | |
Liquidity Hub Connect | No | No | n/a | |
Sale and purchase of rights | No | No | n/a | |
Repo services | No | No | n/a | |
Market restrictions | Yes | Yes | n/a | |
FTT | No | No | n/a | |
Daily reconciliation | Yes | Yes | n/a | |
Moment of entry of instructions | The CSD rules do not define the moment of entry within the meaning of the Settlement Finality Directive | |||
Irrevocability of instructions | Entries made in the ledgers by the CDS are irrevocable | |||
Finality of instructions | CDS makes entries in the ledgers maintained for participants and for CDS to record transactions involving two Participants or CDS and a Participant. Such entries, and settlement of a payment obligation between CDS and a Participant, are final and irrevocable when made, and cannot be deleted, adjusted, reversed, repaid or set aside. | |||
a. Settlement in CHF is possible only for non-Swiss securities and not against SIX SIS as counterparty in CEU.
Legal arrangements
The below section is valid on the date of the legal opinions that were issued and might be subject to change.
The information is provided for guidance only and should not be considered in isolation or as constituting a complete or definitive legal advice on any specific matter.
As CBL is our sub-custodian, please refer to the CBL Market Link Guide - Canada for the complete information about Legal arrangements.
Cash correspondent details
Currency: | Canadian Dollar (CAD) | U.S. Dollar (USD) |
CCB name: | Banque of Montreal, Montreal | Standard Chartered Bank Hong Kong |
CBL account: | 31691043342 | 001-1-573714 |
SWIFT address: | BOFMCAM2 | CHASUS33 |