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T1135 - category 7

On the T1135 is part 7 - Property held in an account with a Canadian Registered securities dealer or Canadian Trust company applicable in cases where a client has foreign stocks with a Canadian bank? I feel like the obvious answer is yes but I can’t find anything to specifically point to that online. Thanks!

Yes that is where you would report that.

Although technically speaking the Canadian banks themselves do not hold any stocks at all for clients. Each of the Canadian Banks has their own affiliated brokerage firms that offer discount or full service brokerage services to their clients.

Thank-you!

This wording " where a client has foreign stocks with a Canadian bank" may be a throw back to the early and mid 1970’s to mid 1980’s when IBM processed blue buy and pink sell tickets for brokerage firms which were processed through banking and trust arms and when banks received delivery of the stock certificates against payment.

Back then each major bank had a TRUST arm. The TRUST arm held the securities in TRUST for the account holder. The account holder had bank accounts for payment and securities accounts for trading. The bank’s TrustCo handled the stock registration. Trades were executed the investment dealers aka stock brokerage firms for investment clients. The stocks were “delivery against payment” for special bank accounts which had “DAP” agreements. In this way an active trading client could hold accounts in a numerous investment firms and pay with two bank accounts - one CAD and one USD.

All of this predated online banking and online discount brokerage firms.

This predated the concentration of the independent investment firms and the rise of mutual funds.

This predated the purchase of the major investment dealers by the banks.

CIBC Wood Gundy

BMO Nesbitt Burns

etc

Since then most banks have Trust arms, directly managed funds sold through their Retail Bank branches, Managed and Trading Accounts through wholly owned full service investment dealers, online trading accounts through wholly owned discount brokerage firms, RRSP and RIF account management, and special services (including legal, trust, segregated investment funds, specialized financial planning, and related legal services) in Canada and offshore for Private Banking and High Net Worth clients.

In most of these cases the Bank issues the T1135.