Canadian-Link Services

In 2008, the Depository Trust Company (DTC) launched Canadian-Link Services asset servicing capabilities, providing DTC Clients with functionality for income, redemption and corporate actions payments processing relating to Canadian securities. The services include dividends, redemptions (including full call), and maturities (excluding municipal event types), and reorganizations including rights, warrants, voluntaries and mandatory events.

All eligible and qualified DTC members, both broker-dealers and banks, can use Canadian-Link Services, but they must be participating in the program.

• Enhances custodial services with expanded processing capabilities for income, redemption and corporate actions payments.
• Enables customers to receive and make payments on all corporate action events for eligible Canadian issues including tender offers and rights issues in Canadian dollars or a mix of U.S. and Canadian dollars.
• Provides the option of settling in either U.S. or Canadian dollars.
• Provides tax benefits that allow DTC customers to obtain “at-source’ tax relief for Canadian issues. (“At-source” relief allows customers to pay the lower tax rate at the time of a dividend payment rather than a higher or maximum rate, which would require a customer to file a tax reclaim to recover the over-withheld amount.)

Voluntary reorganization events can be processed in Canadian dollars. The event announcements are updated as information is received. The event announcement can be reviewed on CA Web, which includes terms, conditions, options and payment rates.

Redemption and voluntary reorganization event elections will be made through the existing tender offer processor (PTOP). All rights and warrant processing will be done through existing rights and warrant functions (PSOP and WARR). Current payment allocation functionality will be updated to provide a view of allocated items on CA Web – including dividend payments as well.

Additional end of day reports will be generated for customer reconciliation purposes.

To request additional information, please contact your relationship manager.