F Series Funds

[Emerson7]

I have just gone through a difficult process of moving my investments "in kind" from an Adviser to my TD Web Broker Account.
I tested the process with RRSP & TFSA's accounts which went well, the RRSP accounts had a couple of F Series Funds.
When moving the Open Account again with several F Series Funds TD refused to transfer them saying they do not handle F Series and the earlier transfers were a mistake.
Does anyone know why Web Brokers do not like F Series Fund, I do not plan to buy more and will sell eventually?
Is either the original adviser or Web Broker getting fees kick back to them from these funds?

[MoneyGal]

F-series funds are only sold through fee-based advisors. You can't hold them in a DIY account - they are only available in managed accounts.

[CJOttawa]

I have just gone through a difficult process of moving my investments "in kind" from an Adviser to my TD Web Broker Account.
I tested the process with RRSP & TFSA's accounts which went well, the RRSP accounts had a couple of F Series Funds.
When moving the Open Account again with several F Series Funds TD refused to transfer them saying they do not handle F Series and the earlier transfers were a mistake.
Does anyone know why Web Brokers do not like F Series Fund, I do not plan to buy more and will sell eventually?
Is either the original adviser or Web Broker getting fees kick back to them from these funds?

Is there a reason you aren't looking at e-Series funds?

[OntFA]

Does anyone know why Web Brokers do not like F Series Fund, I do not plan to buy more and will sell eventually?
Is either the original adviser or Web Broker getting fees kick back to them from these funds?

A separate agreement is required between the brokerage and the fund company to handle F series funds. TD Waterhouse Private Investment Advice most surely has such an agreement in place but it offers fee based platforms where fees can be charged on accounts holding F series funds.

But the reason that TD Waterhouse Discount has no such agreement is because they don't run fee based accounts. And they get no fees from F series funds without a fee based platform. Hence, they have no agreement and that's the reason they won't/can't accept your F series funds.

[Toronto.gal]

Hmmm, all the MF's I had before [including the F-series], were sold through fee based advisors, but never had any problem transferring them to my broker & don't recall completing any separate agreements either, but I might have.

[MoneyGal]

Nah, it isn't between you (the client) and the brokerage; the agreement is between the fund company and the brokerage - that's what OntFA is referring to. You'd never see the agreement.

The bottom line is you can't hold F-series funds in a discount brokerage account. (If you could, everyone would! F-series funds "unbundle" the "cost of advice" from the total fund cost - it's like buying wholesale vs. retail.)

[Toronto.gal]

I got you on the agreement M.gal; I thought that perhaps I had completed a different form for those [not so much an agreement per se].

Well, I'm curious now, so I'll check my old records when I have time.

[Emerson7]

Is there a reason you aren't looking at e-Series funds?

I might look at e-series but I am not very happy with TD now. The issue was I was transferring my account to TD which had F Series funds; TD recommended transfering "in kind" and then they refused to take the funds but weeks pasted before telling me.
I did get the F Series in a couple of account because TD said they made an error. So based on the posted I understand better why Web Brokers do not want them but they are performing so I don't plan to sell what I have in the short term.
However I wish I could transfer to another on line broker after the treatment I have received from TD.

[CJOttawa]

I might look at e-series but I am not very happy with TD now. The issue was I was transferring my account to TD which had F Series funds; TD recommended transfering "in kind" and then they refused to take the funds but weeks pasted before telling me.
I did get the F Series in a couple of account because TD said they made an error. So based on the posted I understand better why Web Brokers do not want them but they are performing so I don't plan to sell what I have in the short term.
However I wish I could transfer to another on line broker after the treatment I have received from TD.

That all does sound frustrating.

Take this for what it's worth but don't "cut off your nose to spite your face." If the funds are performing, you might be better off sticking with them.

The e-Series are completely self-directed so you can manage them yourself. They also have a lower MERs since there aren't any commissions built in. Think about it a while before making a decision.