Learning Partner

Segregated Funds

CE CREDITS:

  • Life Agents (provincial requirements): 3.0 hours, Eligible in BC, AB (AIC# 16275), SK, MB, ON (note, some provinces may restrict the number of hours related to segregated funds);
  • CFP®certificants: This course qualifies for 3.0 FPSC-approved CE credits in the Financial Planning category.

FORMAT: Online interactive eLearning course with optional narration. Course Quiz required to obtain CE credits. Best viewed on PC/MAC full screen. May not be compatible with mobile devices (iPad, iPhone, Samsung phones or tablets, etc.). This course does NOT include printable course notes, it must be read and completed online.

COURSE DESCRIPTION: Conservative investors have always been attracted by the safety of principal provided by seg funds. However, the turbulent markets of 2008 have made many “moderate risk” investors skittish and the demand for seg funds will likely increase as a result, so it is imperative that financial and insurance advisors understand these products.

Despite their many similarities to mutual funds, segregated funds can be hard to understand, and to explain to clients. This course will give you a strong knowledge base so that you can better serve those clients.

After completing this course, you will understand:

  • what an individual variable investment contract (IVIC) is, what a segregated fund is, and how these two components are related
  • what the maturity and death benefit guarantees mean, and how renewals, resets and withdrawals affect those guarantees
  • how to calculate the market value adjustment that can result from withdrawals prior to maturity how seg funds are administred, managed and regulated
  • what the differences are between mutual funds and seg funds
  • how seg funds are taxed, including how income and capital gains and losses are allocated, what happens if the investor redeems the funds, and
  • how the maturity and death benefit guarantees are taxed
NOTE: You have one year from time of purchase to complete this course.
AUTHOR: Roxanne Eszes, CFP®
PUBLISHED: April 2009
FPSC and FPSC CE Credit logo are registered trademarks of the Financial Planning Standards Council

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