Important notices

Starting on July 2 2024, all existing UBS Bank (Canada) credit facilities that reference the Canadian Dollar Offered Rate (CDOR) as a benchmark will transition to alternative reference rates, plus a credit spread adjustment:

• For overnight loans in CAD, the alternative reference rate will be overnight CORRA – Canadian Overnight Repo Rate Average administered by the Bank of Canada (or any successor administrator).
  
• For term loans in CAD to corporate clients, the alternative reference rates will be Term CORRA administered by CanDeal Benchmark Administration Services Inc., TMX Inc., (or any successor administrator).

Please read the following notice for further information or contact your UBS Client Advisor.

We would like to inform you about certain regulatory  updates that may impact your UBS accounts.

While this information may not directly affect your relationship with us today, we want to ensure you are aware when we make important changes.

What you need to know

Starting on May 27^th, 2024, in Canada (May 28^th in the US) the amount of time it takes for certain securities transactions to settle will be shortened from two days to one day.

Please review the information provided below.

Changes to settlement date for securities transactions effective May 27^th, 2024

In an effort to reduce risk for investors and financial markets, rule changes by the U.S. Securities and Exchange Commission (SEC) and other US regulators will shorten the amount of time it takes for securities transactions to settle, moving from two business days after the trade date (commonly referred to as “T+2”) to one day (“T+1”).  Regulators in Canada have aligned with US to shorten settlement cycle to one business day for all in scope securities (listed below)

This industry-wide change impacts transactions in equities, corporate bonds, municipal bonds, exchange traded funds, mutual funds, and other products, including unit investment trusts and some over-the-counter derivative products, for US and Canadian markets. It does not affect products which already settle in one day or less.

What this means to you

Once the rule change has been implemented

• Your account will need to have sufficient funds to complete securities transactions for affected products no later than within a one-day settlement period.  At our discretion, we may require funds to be in your account before accepting an order to buy securities.
• Proceeds of sales of affected securities in your account will generally be received a day earlier.
• The change in the settlement period for affected products will appear on your trade confirmations.