Mutual Fund Account Terms
Effective as of July 1, 2010
ING Direct Funds Limited provides you with simple and convenient access to your mutual funds account. The following pages contain important details you need to know about your Account. If you have any questions we would be pleased to help you. Call us at
Mutual funds are distributed by ING Direct Funds Limited, which is a corporate entity separate from, although wholly-owned by ING Bank of Canada. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. There can be no assurances that any mutual fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you. Mutual fund units are not deposits or obligations of any bank, are not guaranteed by any bank or other Canadian financial institution, are not insured by the Canada Deposit Insurance Corporation or any government deposit insurer, and investment in mutual fund units involves risk, including the possible loss of principal. Using borrowed money to finance the purchase of mutual fund units involves greater risk than a purchase using cash resources only. If you borrow money to purchase mutual fund units, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the mutual fund units purchased declines.
By opening an Account at ING Direct Funds Limited you agree and accept the following Account Terms:
A. GENERAL TERMS - Applicable to all accounts
Our Definitions
The words "you", "your", "account holder" and "client" mean each customer that opens an Account with ING Direct Funds Limited. The words "we", "us", "our", and "ING DIRECT Mutual Funds" refer to ING Direct Funds Limited. "Account" means any and all ING DIRECT Mutual Fund accounts you have with ING Direct Funds Limited. The "primary account holder" is the person whose name appears first on the ING Direct Funds Limited Account statement. "External Account" means an account that you hold with another financial institution that has been linked to your ING DIRECT Mutual Funds Account according to the procedures outlined in these Terms and Conditions, excluding ING DIRECT Account(s).
Mutual Funds Account
The Account Terms apply to all of your Accounts. Additional terms and conditions may also be outlined on the ING DIRECT Mutual Funds Account Enrollment Form and in the ING DIRECT Mutual Funds Privacy Code, and you agree to be bound by those terms and conditions in addition to these Account Terms. The Account Terms apply if your Account is closed, temporarily reopened, or if you are assigned another account number, as well as if there are joint account holder(s).
You confirm that you have reached the age of majority in the province or territories in which you reside.
You understand that Retirement Savings Plan, Retirement Income Fund and Tax-Free Savings Accounts are governed by the Declaration of Trust, and if you have one of these Accounts, that you have read and understood this document. You understand that you must provide us with all the required information for registration of these Accounts, including your social insurance number, and if you do not, the Canada Revenue Agency may refuse to register your Account, in which case you consent to the closing of your Account.
You agree that we do not provide you with any legal, tax or accounting advice regarding your mutual fund investments. You assume full responsibility for all transactions in your Account and all your investment decisions.
Opening an Account
For each Account that you open with us, you must initially provide us with an encoded personal deposit cheque from your other financial institution. This cheque will allow us to protect the security of your Account and to link your Account with your External Account. The cheque that you provide must clear to establish this link.
Once your cheque has been deposited you must verbally confirm to us that you wish to establish the link to your External Account. We may limit the number of External Accounts that can be linked. By providing us with an initial deposit cheque you agree that all further business with us may be conducted on your instructions through any medium offered by us. All transactions by telephone, computer, or other means, electronic or otherwise, will have the same legal effect as if you authorized these transactions in writing. You must keep at least one valid External Account. We reserve the right not to open an Account if our Account opening requirements are not met. Your Account cannot be opened if you submit an incomplete ING DIRECT Mutual Funds Account Enrollment Form.
If you have an ING DIRECT Account at the time that an application is submitted to open an ING DIRECT Mutual Funds Account, you are exempt from the above requirement to submit an encoded personal cheque from your other financial institution unless you wish to request that purchase and redemption orders of mutual funds be deposited/withdrawn directly to or from that financial institution, in which case an External Account must then be linked according to the above procedure.
If you have previously established a link with an external account in connection with a banking product offered by ING DIRECT, you agree that these external accounts can be linked by us to your ING DIRECT Mutual Funds Account(s).
Purchase and Sale Transactions
You may request and/or authorize purchases and redemptions of mutual funds by telephone, or any other means provided by us. We will make electronic funds transfers to or from your External Account(s) upon your request. Before we make an electronic funds transfer for you we will ask you to provide instructions and any, all, or some of the following pieces of identification information: (a) your client number; (b) your Account number(s); (c) your password; (d) your Personal Identification Number (PIN); and/or (e) any other identifying information that is deemed necessary in order to confirm your identity.
Funds usually arrive in your ING DIRECT Account or your External Account within one to two business days after the settlement date on your redemption order. We are unable to guarantee the date your funds will arrive in your ING DIRECT Account or External Account.
Purchases and redemptions of mutual funds may be made by telephone during our regular business hours of 8 a.m. – 8 p.m. Eastern Standard Time from Monday to Friday excluding holidays. Purchase and redemption orders received by us prior to 3 p.m. Eastern Standard Time will be processed according to that mutual fund's closing net asset value as of that date. Purchase and redemption orders received by us after 4 p.m. Eastern Standard Time will be processed according to that mutual fund's closing net asset value of the following business date without exceptions. Purchase and redemption orders received by us between 3 p.m. – 4 p.m. Eastern Standard Time will be processed on a best efforts basis to obtain for you that mutual fund's closing net asset value of that date. However, the closing net asset value obtained on your order may be that of the following business date.
You agree that we are not responsible for a delayed calculation of the net asset value of your purchase or redemption order in the event of any superior force situation that affects us or any other party which is responsible for processing your order (for example the mutual fund company which issues your mutual fund units) that is beyond our control, including any act of God, strikes, lockouts or other industrial disturbances, sabotage, war, blockades, insurrections, riots, epidemics, lightning, earthquakes, floods, storms, fires, washouts, nuclear and radiation activity or fallout, arrests, and restraints of rulers and people, civil disturbances, terrorism, explosions, breakage of or accident or serious malfunction of machinery or computing systems, inability to obtain materials or equipment, or any legislative, administrative or judicial action which has been resisted in good faith by all reasonable legal means.
Purchases or redemptions of mutual funds from your Account may be reversed if the electronic funds transfer cannot be delivered to/from your other financial institution or is returned for any reason. We will not accept traveller's cheques, cheques issued by a financial institution located outside of Canada, cash or coinage for purchase orders. If you send cash to us we will not be responsible for any loss that you may incur as a result. Transactions and/or balances may be limited in dollar amounts, or otherwise as may be determined by us, and such limits may be changed in our sole discretion without notice to you.
We will not be liable for any direct, indirect or consequential loss, damage or inconvenience arising directly or indirectly out of your use of, or inability to access ING Direct Funds Limited or our services. This includes but is not limited to any fraud committed against your Account or our failure to carry out instructions that you have given to us. We reserve the right to contact you to obtain confirmation of any written or verbal instructions before processing any transaction but we will not be liable due to our inability or failure to contact you in order to confirm such instructions. You agree that all telephone calls and other electronic correspondence may be recorded and kept as a record of your instructions. We may change the requirements for and manner of transferring funds into and out of your Account at any time.
You understand that mutual fund subscriptions are made on the terms and conditions described in the prospectus and that they are subject to approval by us. We reserve the right to accept or reject any purchase order within one (1) business day of receipt of the order. We may refuse to execute any trading order or direction for any reason including if we determine (and we have no obligation to do so) that it would be imprudent to execute it because of our assessment of the state of the Account, the nature of the transaction requested, your financial position, or for your own protection. We may also refuse any trading instruction, order or direction made from outside Canada. You are responsible for all trading instructions given by you. You acknowledge that a trading instruction is final, and you cannot object to the order at a later date.
If you do not pay for the mutual funds as required under these Account Terms, you will be responsible for any losses we sustain or costs we incur and we may without prior notice to you, do whatever we consider is necessary in order to avoid or minimize any potential loss or inconvenience to us, including without limitation, settling and then reversing the trade, suspending your trading privileges or terminating your Account.
If you trade excessively
We discourage investors from trading excessively and from using market timing strategies on a regular basis. Excessive trading can harm the fund's performance and the value of other investors' holdings in the fund, and can be particularly problematic when large sums are involved. Excessive trading can include buying and then redeeming or switching a large number of units of a fund within 30 days of buying them. We have policies and procedures to detect and deter excessive trading and frequent use of market timing strategies that include the ability to refuse your present or future order(s) to buy or switch mutual funds. If, in our sole discretion, we determine that you are trading excessively, in addition to taking other available remedies, the relevant fund may charge you a short-term trading penalty to be paid directly to the fund out of the redemption proceeds.
What are your legal rights?
Under securities laws in some provinces and territories, you have the right to:
- withdraw from your agreement to buy mutual funds within two business days of receiving the simplified prospectus
- cancel your purchase within 48 hours of receiving confirmation of your order, or
- cancel your purchase agreement and get your money back if the simplified prospectus, annual information form or financial statements misrepresent any facts about the fund. You may also be entitled to get your money back or make a claim for damages if you have suffered a loss.
The time limit to exercise these rights depends on the governing legislation in your province or territory. For more information, refer to the securities legislation of your province or territory, or consult your lawyer.
Evidence Regarding Electronic Communication
A copy of any electronic communication will be admissible in any legal, administrative or other proceedings in the same manner as an original document in writing. You agree to waive any right to object to the introduction of any copy of electronic communications in evidence.
Clearing, Settlement and Payment
We may present and deliver instruments for payment, clearing, collection, acceptance or otherwise through any bank or other party as we deem appropriate. The bank or other party shall be considered to be your agent and we will not, in any circumstances, be responsible or liable to you for the acts or omissions of this bank or other parties, however caused, in the performance of this service. We are also not liable for the loss, theft, destruction or delayed delivery of any instrument while in transit to or from, or in the possession of any bank or other party. If we or our agent present an instrument to another financial institution for payment on your behalf and the other financial institution refuses to recognize or provide payment on that instrument for whatever reason, you will remain responsible for the amount of that instrument delivered to us.
Indemnity
You agree to indemnify us against any claims, costs or liabilities incurred by us in connection with any services provided to you or any other dealings between us, including any claim or liability resulting from our endorsement on any instrument, arising out of a forged or unauthorized signature on that instrument or otherwise.
Updated/New Personal Information
You agree to promptly advise us if you need to update any information relating to your Account. In particular, you agree to advise us immediately if your address, investment objectives and risk tolerance change or if there is any significant change in your financial affairs.
When we receive new or updated personal information concerning your Account, we may put a hold on your Account in order to verify such information. We may also request supporting documentation so that we can confirm updated or new information, and we may maintain the hold on your Account until your updated or new personal information can be confirmed.
Automatic Savings Program
By requesting that an Automatic Savings Program ("ASP") be set up for you, you authorize ING Direct Funds Limited and your other financial institutions(s) to transfer money to and from your External Account(s) in accordance with your instructions, and you confirm your understanding, acceptance and participation in the Automatic Savings Program.
Privacy Principles
We are committed to keeping individuals' personal information accurate, confidential, secure and private. The ING DIRECT Mutual Funds Privacy Code (the "Privacy Code") reflects that commitment. The Privacy Code is based on the Personal Information Protection and Electronic Documents Act, the Canadian Bankers Association Model Privacy Code and on the Canadian Standards Association Model Code for the Protection of Personal Information (CAN/CSA-Q830-96).
A copy of the Privacy Code will be made available to you when you open an Account. The Privacy Code is also available on our website at www.ingdirectfunds.ca or by calling us at
You agree that in order to complete any purchase or redemption of your mutual funds, that your personal information shall be transmitted to the mutual fund company that issues your mutual fund investment. You agree that you are also a client of that mutual fund company, and that the mutual fund company requires the same information that you provided us at the time of account opening. We are not responsible for any breach of Canadian privacy laws made by the mutual fund company that issues your mutual fund units at any time that you are a client of that mutual fund company as described in these Account Terms. The Privacy Code will not apply to information that has been sent to a mutual fund company of which you are a client once that information is received by the mutual fund company and is under its control. You agree that any complaints concerning your personal information that was transmitted according to these Account Terms to a mutual fund company that issued your mutual fund investments shall be submitted directly to that mutual fund company, and you agree at all times to indemnify, defend and hold harmless ING Direct Funds Limited, its agents, suppliers, affiliates and their respective directors and employees against all actions, proceedings, costs, claims, damages, demands, liabilities and expenses whatsoever (including legal and other fees and disbursements) sustained, incurred or paid by us directly or indirectly in respect of your personal information so transmitted.
Confidentiality and Accessing Your Account with Your PIN and Password
To protect your privacy and your investments, when you open an Account with us you must select a personal identification number ("PIN"). The PIN allows you access to your Account and you must always provide it to us before we will follow any instructions regarding your Account. If you forget your PIN, we may accept a combination of alternate pieces of personal identification information. You are responsible for and give us your authorization to carry out all instructions given using your Account numbers, password and/or PIN. We will not be liable to you for any loss or claim arising out of our relying on verbal or electronic instructions provided to us using your password and/or PIN.
Your password and PIN must be kept confidential. You alone are responsible for your password and PIN security. When you give us instructions by cellular phone, e-mail, or other non secure methods we cannot guarantee confidentiality because third parties can intercept these methods of communication. If any other person becomes aware of your password or PIN for any reason you must immediately notify us. You will be liable for all transactions that are made before we are notified.
Right of Setoff
We reserve the right to use all of the money in your Account(s) to pay any debts or other obligations (including any contingent obligations) regardless of how the debt or liability arose, you owe us. (That is what's known as a "Set-Off"). In the case of a joint account, all account holders consent to our using all money up to the full amount invested, as payment for any debt or obligations you owe us, regardless of each individual joint account holder's contribution to the Account. If you have more than one Account with us, we may, without prior notice and at any time, combine those Accounts whether in respect of mutual funds or money, and make such adjustments between those Accounts as we deem necessary. For example, we may transfer any credit balance from one Account to offset any debit balance in another Account. We may do this with respect to any Account in which you have an interest, whether jointly or otherwise.
Limitation of Liability
We are not responsible for any losses, costs, damages or any failure to obtain any profit in connection with your Account or with any optional service related to your Account, without limitation and however caused, unless we were grossly negligent. If we were grossly negligent, you will not hold us liable for any indirect, special or consequential damages. We will make every reasonable effort to provide you with access to your Account or any service. You will be responsible for any loss, cost or liability (including reasonable legal charges) incurred by us as a result of your failure to comply with these Account Terms.
Account Statements and Confirmation of Transactions
Account statements will be provided to you on a quarterly basis, either by mail or electronic means. However, we may provide you with Account statements on a more frequent basis. Additionally, your Account balances are available by telephone or online at www.ingdirect.ca. Account statements will be delivered to the primary account holder's last address in our records. You agree that you will examine all of your Account statements and other transaction records regularly. If you discover any errors or omissions in your Account statements and/or other transaction records, you must notify us of such errors or omissions within 30 days of the date of the Account statement or the transaction date. We will consider Account statements and other transaction records to be accurate if we do not receive any notice from you to the contrary. We shall not be liable to you for any loss or claim arising as a result of any errors or omissions in Account statements and other transaction records.
Unless we otherwise agree, trade confirmations will be mailed to you for each trade, except for recurring trades that form part of an Automatic Savings Plan that you have initiated for the purchase of your mutual funds. In this case, you will receive a confirmation of the first transaction only. You will examine every trade confirmation sent to you as soon as you receive it, and advise us of any errors. If you do not object within 10 business days of the settlement date shown on the trade confirmation, then we may consider the trade authorized, correct and complete, and you cannot object to it at a later date.
The Canadian Payments Association
By signing the ING DIRECT Mutual Fund Account Enrollment Form and providing an initial deposit cheque for an External Account you agree that this authorization is provided for the benefit of your other financial institution and you authorize us to process Fund Transfer requests against your Account according to the Rules of the Canadian Payments Association. You authorize and assure us that all individuals who have signed the ING DIRECT Mutual Fund Account Enrollment Form are all those who are required to sign on your chequing account(s) at your other financial institution(s).
You agree that this authorization is provided for our benefit and for the benefit of the other designated financial institution(s). You also agree that this authorization is provided in consideration of us agreeing to process debits against your designated account(s) in accordance with these Account Terms as agreed to with us. Canceling this authorization does not terminate any other agreement that exists between us. Your authorization applies only to the method of payment and does not otherwise have any bearing on any agreement for services with us. The financial institution(s) at which you maintain your External Account(s) is (are) not required to verify that the debits are drawn in accordance with this authorization.
You further agree that your client number and assigned PIN or other security code or other signature equivalents may be used and will constitute valid authorization for ING DIRECT to process the debits to your account(s) that you have requested. You also agree that delivering this authorization to us also constitutes delivery by you to the designated financial
Funds Transfer Pre-Authorized Debits
Your initial request and all such subsequent requests to have money transferred to and/or from your ING Direct Funds Limited account and your External Account(s) constitutes a Funds Transfer Pre-Authorized Debit ("PAD"). All Funds Transfers are customer-initiated pre-authorized debits where money is moved by the same customer from the account of one financial institution to the account of another financial institution. ING Direct Funds Limited will process a Funds Transfer and move funds only at the customer's initiation and request and as per the customer's instructions, including amount, frequency etc. The timing and amount of Funds Transfers will vary according to the instructions received from you. To arrange a Funds Transfer, you may contact ING Direct Funds Limited at 1-877-464-5678 and provide your instructions and authorization to a Mutual Funds Associate or you may log onto our website to initiate and authorize an electronic funds transfer online. It is your responsibility to either provide us with, or enter online, the correct information in order to process your Funds Transfer. ING Direct Funds Limited will process such transaction in accordance with the Rules of the Canadian Payments Association and these Account Terms. For an overview of your rights and responsibilities with respect to PADs, please visit the Canadian Payments Association at www.cdnpay.ca.
Cancellation
The External Account(s) at your other financial institution(s) which we are authorized to draw funds from upon your request is specified by you by providing an initial deposit cheque from that account. You agree to inform us by telephone or other means provided by us from time to time of any change in the account information provided before any request for the transfer of funds. You may cancel this authorization at any time by providing notice to us, in writing or as otherwise stipulated by us. You may cancel or revoke your authorization of an ASP at any time by providing us with at least 10 days notice before your next scheduled Funds Transfer PAD. You agree that your cancellation of this authorization will take effect upon its receipt and confirmation by us. You can obtain a sample cancellation form or further information on your rights to cancel a PAD by visiting the Canadian Payments Association at www.cdnpay.ca.
Contact Us
ING DIRECT FUNDS LIMITED
111 Gordon Baker Road
Toronto, Ontario
M2H 3R1
Tel.: 1-877-464-5678
Fax: 1-877-464-7797
www.ingdirectfunds.ca
Pre-Notification
You waive your right to receive pre-notification of the amount of the PAD and agree that you do not require advance notice of the amount of PADs before the debit is processed. You acknowledge that you will not receive written notice from us of the amount to be debited or the due dates of the debiting.
Confirmation
You confirm that the information you have provided is correct and accurate and that you have authorized ING DIRECT to act on your instructions and process your requested Funds Transfer PAD(s).
You may wish to print off a copy of these Terms and Conditions for your records.
Recourse
You have certain recourse rights if any debit does not comply with this agreement. For example, you have the right to receive reimbursement for any debit that is not authorized or is not consistent with this PAD Agreement. To obtain more information on your recourse rights, you may contact your financial institution or visit www.cdnpay.ca.
EXCEPTION: Please note that a Funds Transfer PAD, being a debit authorized by the customer wherein funds are moved among the customer's accounts held at different financial institutions, the recourse rights noted above through the Canadian Payments Association are not applicable. However, if a discrepancy occurs in a Funds Transfer PAD that you initiated through ING Direct Funds Limited, please contact us
Closing of Accounts
You may close your Account with us at any time. We also have the right to close your Account for any reason including excessive trading as described above, and pay you the balance, if any, according to our Rights of Set-off described above. On the death of an account holder, we are authorized to take such steps or require such documentation (including but not limited to a certified copy of the death certificate, a letter of direction and notarized copy of the Certificate of Appointment of Estate Trustee or Executor) or restrict transactions in the Account as we deem prudent or advisable. Upon receipt of the proper legal documentation following your death, we will transfer the balance of your funds to your legal representative and close your Account. An estate representative of a deceased account holder will have the same rights, responsibilities and obligations under these Account Terms as the account holder, unless we determine otherwise in our sole discretion.
Changes to this Agreement
We may change these Account Terms at any time, and any changes will be effective 30 days following notice to you. Notice of changes to the Account Terms may be distributed through ING DIRECT Mutual Funds statements, newsletters and/or posted on the ING DIRECT Mutual Funds web site. If you access or continue to hold mutual fund investments in any Account with us after the effective date of the change, you automatically accept the change.
Miscellaneous Terms
Acceptance of Account Terms
At our discretion we may accept your signature, or other evidence of your acceptance of these Account Terms received by facsimile, telephone or other electronic means, as your original signature or acceptance. We can delay, or refrain from exercising, any of our rights under these Account Terms without losing them.
Communication by Regular Mail
All communications from us to you (including notices that purchases or redemptions of mutual funds to/from your Account could not be accepted or items have been returned) will be sent by regular mail unless otherwise stipulated by us.
Payment and Clearing Systems
We do not control the national payments system or other payment system participants used in the process of transferring your money. We cannot guarantee a time of delivery for requested funds transfers. However, we will make reasonable efforts to facilitate your funds transfer requests.
Language
You have expressly requested that this document, and all related documents to your Account(s) be written in English. Vous avez expressément demandé que ce document, et tout autre document concernant votre (vos) compte(s) soient rédigés en anglais.
Unclaimed Property
If your Account or the mutual fund units in your Account become unclaimed property within the meaning of any applicable legislation governing unclaimed property, we may sell any or all of the mutual fund units in your Account for the purpose of converting your Account holdings into cash.
Complaints or Concerns about these Account Terms and your Account
Except where provided elsewhere in these Account Terms, the ING DIRECT Mutual Funds Account Terms are governed by the laws of the province where you have your residence. If you move outside of Canada, the laws of the Province of Ontario will apply to your Account. If you have any questions regarding these Account Terms or you have complaints in connection with your Account, please call us at 1-877-464-5678, or visit the ING DIRECT Mutual Funds web site (www.ingdirectfunds.ca).
Summary of ING Direct Funds Limited Compliant Handling Procedures
ING Direct Funds Limited has procedures in place to handle any written or verbal complaints received from clients in a fair and prompt manner. This is a summary of those procedures, which we provide to new clients, clients who have filed a complaint and that we also make available on our website at www.ingdirectfunds.ca.
The Client Complaint Information Form
ING Direct Funds Limited will provide new clients and clients who complain with a separate document called the Client Complaint Information Form ("CCIF") that provides general information about their options for making a complaint.
How to File a Complaint with ING Direct Funds Limited
Clients of a mutual fund dealer who are not satisfied with a financial product or service have a right to make a complaint and to seek resolution of the problem. In many cases, complaints are easily solved by a phone call to ING Direct Funds Limited at 1-877-464-5678. All complaints to ING Direct Funds Limited will be handled by qualified personnel.
If you have made a complaint to ING Direct Funds Limited and your questions or complaints are not resolved to your satisfaction, please write to: The Ombudsman, ING Direct Funds Limited, 111 Gordon Baker Road, Toronto, Ontario, M2H 3R1.
Where clients have difficulty putting their complaint in writing, they should advise us so that we can provide assistance. For confidentiality reasons, we will only deal with the owner of the account.
Complaint Handling Procedures
ING Direct Funds Limited will acknowledge receipt of complaints promptly, generally within five days. We review all complaints fairly, taking into account all relevant documents and statements obtained from the client, our records, our staff members and any other relevant source. Once our review is complete we provide clients with our response, which will be in writing if the complaint was made in writing. Our response may be an offer to resolve your complaint, a denial of the complaint with reasons or another appropriate response. Where the complaint relates to certain serious allegations, our initial acknowledgement will include copies of this summary and the CCIF. Our response will summarize your complaint, our findings and will contain a reminder about your options with the Ombudsman for Banking Services and Investments.
We will generally provide our response within ninety days, unless we are waiting for additional information from you, or the case is novel or very complicated.
We will respond to communications you send us after the date of our response to the extent necessary to implement a resolution or to address any new issues or information you provide.
Settlements
If we offer you a financial settlement, we may ask you to sign a release and waiver for legal reasons.
Contacting ING Direct Funds Limited
Clients may contact us at any time to provide further information or to inquire as to the status of their complaint, by contacting the individual handling their complaint or by contacting:
ING Direct Funds Limited
111 Gordon Baker Road
Toronto, Ontario M2H 3R1
Telephone: 1-877-464-5678
Client Complaint Information Form
Clients of a mutual fund dealer who are not satisfied with a financial product or service have a right to make a complaint and to seek resolution of the problem. Mutual Fund Dealers Association of Canada ("MFDA") Members have a responsibility to their clients to ensure that all complaints are dealt with fairly and promptly. If you have a complaint, these are some of the steps you can take:
- Contact ING Direct Funds Limited. We are responsible to you, the investor, for monitoring the actions of our representatives to ensure that they are in compliance with by-laws, rules and policies governing our activities. ING Direct Funds Limited will investigate any complaint that you initiate and respond back to you with the results of our investigation within the time period expected of a MFDA Member acting diligently in the circumstances, in most cases within three months of receipt of the complaint. It is helpful if your complaint is in writing.
- Contact the MFDA, which is the self -regulatory organization in Canada to which ING Direct Funds Limited belongs. The MFDA investigates complaints about mutual fund dealers and their representatives, and takes enforcement action where appropriate. You may make a complaint to the MFDA at any time, whether or not you have complained to ING Direct Funds Limited. The MFDA can be contacted:
- By completing the on-line complaint form at www.mfda.ca
- By telephone in Toronto at (416) 361-6332, or toll free at 1-888-466-6332
- By e-mail at complaints@mfda.ca
- In writing by mail to 121 King Street West, Suite 1000, Toronto, ON M5H 3T9 or by fax at (416) 361-9073
Compensation:
The MFDA does not order compensation or restitution to clients of Members. The MFDA exists to regulate the operations, standards of practice and business conduct of its Members and their representatives with a mandate to enhance investor protection and strengthen public confidence in the Canadian mutual fund industry. If you are seeking compensation, you may consider the following:
- Ombudsman for Banking Services and Investments ("OBSI"): After ING Direct Funds Limited has responded to your complaint, you may contact OBSI. You may also contact OBSI if ING Direct Funds Limited has not responded within 90 days of the date you complained. OBSI provides an independent and impartial process for the investigation and resolution of complaints about the provision of financial services to clients. OBSI can make a non-binding recommendation that ING Direct Funds Limited compensate you (up to $350,000) if it determines that you have been treated unfairly, taking into account the criteria of good financial services and business practice, relevant codes of practice or conduct, industry regulation and the law. The OBSI process is free of charge and is confidential. OBSI can be contacted:
- By telephone in Toronto at (416) 287-2877, or toll free at 1-888-451-4519
- By e-mail at ombudsman@obsi.ca
- Legal Assistance: You may consider retaining a lawyer to assist with the complaint. You should be aware that there are legal time limits for taking civil action. A lawyer can advise you of your options and recourses. Once the applicable limitation period expires, you may lose rights to pursue some claims.
- Manitoba, New Brunswick and Saskatchewan: Securities regulatory authorities in these provinces have the power to, in appropriate cases, order that a person or company that has contravened securities laws in their province pay compensation to a claimant. The claimant is then able to enforce such an order as if it were a judgment of the superior court in that province. For more information, please visit:
Manitoba: www.msc.gov.mb.ca
New Brunswick: www.nbsc-cvmnb.ca
Saskatchewan: www.sfsc.gov.sk.ca - Québec: The Autorité des marchés financiers ("AMF") pays indemnities to victims of fraud, fraudulent tactics or embezzlement where those responsible are individuals or firms authorized to practice under the legislation governing the provision of financial services in Quebec. It also rules on the eligibility of claims and sets the amount of the indemnities to be paid to victims. Consumers can thus be compensated to a maximum of $200,000 per claim, through funds accumulated in a financial services compensation fund. For more information, please visit www.lautorite.qc.ca.
Jurisdiction of the laws of your province of residence
We do not currently have a physical location in the following Provinces and Territories: Manitoba, Saskatchewan, Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador, Northwest Territories, Yukon and Nunavut. We are provincially licensed in each of these provinces and territories, and will service your Account from our call centre(s) located in Ontario. If you ever have a complaint or concern relating to your Account, please contact us first so that we can deal with any matter that may arise.
We are legally required to provide you with the following information:
ING Direct Funds Limited agrees to submit and attorn to the jurisdiction of the courts of the following Provinces and Territories: Manitoba, Saskatchewan, Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador, Northwest Territories, Yukon and Nunavut with respect to any disputes which may arise out of our actions or conduct in relation to your Account(s) notwithstanding any provision to the contrary in any contract, agreement or document executed by you at the time your Account is opened or at any time thereafter. Our address for service of legal proceedings in Manitoba is: Pitblado LLP, 2500-360 Main Street, Winnipeg, MB R3C 4H6. Our address for service of legal proceedings in Saskatchewan is: MacPherson Leslie & Tyerman LLP, 1500-1874 Scarth Street, Regina, SK S4P 4E9. Our address for service of legal proceedings in Nova Scotia is: Stewart McKelvey Stirling Scales, 900 - 1959 Upper Water Street, Halifax, NS B3J 2X2. Our address for service of legal proceedings in New Brunswick is: Stewart McKelvey Stirling Scales, 10th Floor, Brunswick House, 44 Chipman Hill, Saint John, New Brunswick, E2L 2A9. Our address for service of legal proceedings in Prince Edward Island is: Stewart McKelvey Stirling Scales, 65 Grafton Street, P.O. Box 2140, Charlottetown, PE C1A 8B9. Our address for service of legal proceedings in Newfoundland and Labrador is: W. Les Thistle, Barrister, Solicitor and Notary Public, Suite 207, Town Square, 75 Barbour Drive, Mt. Pearl, NL A1N 2P3. Our address for service of legal proceedings in the North West Territories is: Davis LLP Suite 802 Northwest Tower 5201-50th Avenue Yellowknife, NT X1A 3S9. Our address for service of legal proceedings in the Yukon is: Davis LLP 201-4109 4th Avenue Whitehorse, YT Y1A 1H6. Our address for service of legal proceedings in Nunavut is: c/o Michael H. Penner, P.O. Box 11032 Iqualuit, NU X0A 1H0.
Non Residents
If you move outside of Canada temporarily or permanently, we may not be allowed to accept trading instructions from you or do business with you. If your country of residence changes, you will be responsible for any withholding taxes that arise. Any transactions you make may also be subject to the laws of your new country of residence.
This communication does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. This information is not to be construed as an offer to sell or a solicitation to buy any securities or other product, service or information in the United States of America or the territories or possessions thereof, the United Kingdom, or any other country outside of Canada. Neither ING Direct Funds Limited nor any of the mutual fund units it offers are registered with the U.S. Securities and Exchange Commission, the U.K. Financial Services Authority or any other securities regulator located outside of Canada. If you choose to access our website from outside of Canada, you do so on your own initiative and are responsible for compliance with all applicable local, national or international laws.
Trademark and Copyright
Certain names, words, titles, phrases, logos, icons, graphics or designs on our website or in any other materials provided to you from time to time may constitute trade names, trade-marks or service marks of ING Direct Funds Limited or other entities affiliated therewith, the use of which may have been licensed among them. The display of trade-marks on our website or in any other materials provided to you from time to time does not imply that a license of any kind has been granted to anyone else. All such information is protected under the copyright laws of Canada and in other countries. Unless otherwise specified, no one has permission to copy, redistribute, reproduce and republish, in any form, any of this information.
Successors and Assigns
These Account Terms are binding upon you and each of your successors, assigns and legal representatives. You cannot transfer any of your rights or obligations under these Account Terms to anyone else.
Risks of Borrowing to Invest
Here are some risks and factors that you should consider before borrowing to invest:
Is it Right for You?
- Borrowing money to invest is risky. You should only consider borrowing to invest if:
- You are comfortable with taking risk.
- You are comfortable taking on debt to buy investments that may go up or down in value.
- You are investing for the long-term.
- You have a stable income.
- You should not borrow to invest if:
- You have a low tolerance for risk.
- You are investing for a short period of time.
- You intend to rely on income from the investments to pay living expenses.
- You intend to rely on income from the investments to repay the loan. If this income stops or decreases you may not be able to pay back the loan.
You Can End Up Losing Money
- If the investments go down in value and you have borrowed money, your losses would be larger than had you invested using your own money.
- Whether your investments make money or not you will still have to pay back the loan plus interest. You may have to sell other assets or use money you had set aside for other purposes to pay back the loan.
- If you used your home as security for the loan, you may lose your home.
- If the investments go up in value, you may still not make enough money to cover the costs of borrowing.
Tax Considerations
- You should not borrow to invest just to receive a tax deduction.
- Interest costs are not always tax deductible. You may not be entitled to a tax deduction and may be reassessed for past deductions. You may want to consult a tax professional to determine whether your interest costs will be deductible before borrowing to invest.
ING Direct Funds Limited should discuss with you the risks of borrowing to invest.
Changes to this Agreement
We may change these Account Terms at any time, and any changes will be effective 30 days following notice to you. Notice of changes to the Account Terms may be distributed through ING DIRECT Mutual Funds statements, newsletters and/or posted on the ING DIRECT Mutual Funds web site. If you access or continue to hold mutual fund investments in any Account with us after the effective date of the change, you automatically accept the change.
B. Terms that Apply to Joint Accounts and Accounts for the Benefit of Others Only (In addition to General Terms above)
Joint Accounts
For Joint Accounts, we may accept instructions for the Account or deliver mutual fund units, money, property, confirmations, statements and other information to any person authorized to give instructions in respect of the Account. You will be solely responsible for ensuring that the decision-making process in respect of the Account is properly followed. If one joint account holder requests a transaction we will execute it without express authorization of any other joint account holder. In addition, you are responsible, both individually and jointly, for all obligations arising from these Account Terms. Each Account holder chooses their own password and PIN.
In the event of the death of either or any of the joint account holders, the entire beneficial interest of that joint account shall vest in the surviving account holder(s) on the same terms and conditions as theretofore held. If one of the joint account holders die, the surviving account holder(s) must immediately inform us in writing, and until such time, we may carry out orders and treat the Account as if all account holders are living. The death of one of the joint account holders shall not in any way affect the right of the surviving account holder(s) to redeem the mutual fund investments in the Account(s), subject to all applicable laws relating to succession duties and estate and inheritance taxes. For Quebec residents only, any positive balance shall be settled in accordance with the estate of the deceased joint account holder.
Accounts for the Benefit of Others - "In Trust", Etc.
We are not required to recognize anyone other than you as having any interest in your Account, except joint account holders when an Account is a joint account. For example, if you request that we open an Account in your name, but you use "In Trust" or "As Nominee" or some similar designation, whether or not it is for a specified third party, we will only accept instructions for that Account from you. We are under no obligation to obtain permission from any other person.
If you open an "in trust" Account, you agree that you are liable to us for all liabilities and obligations respecting the Account in your personal capacity, and not as a trustee, agent or otherwise. We have no obligation to observe the terms of any trust or agency, whether written, verbal, implied, constructive or otherwise, and you are solely responsible for ensuring any restrictions of the trust and any applicable law are adhered to. You will be liable to us in connection with your Account in your personal capacity and not as a trustee, agent or otherwise. You will indemnify us against any loss, claim, damages, liability and expenses of any kind whatsoever arising out of operation of the Account.
