Important information

Statement of policies respecting conflicts of interest

Refer to the following documents for the terms and conditions on NBI investments held in registered plans and Tax-Free Savings Accounts:

• Investment Account Agreement
• Declaration of trust – RRSP
• Declaration of trust – RRIF
• Declaration of trust – TFSA
• Declaration of trust – FHSA
• Declaration of trust – RESPI
  
• Declaration of trust – RESPF

Securities regulations in Canada require all dealers and advisors to comply with certain rules in relation to conflicts of interest, particularly with respect to the disclosure of information in that regard. The Statement of policies respecting conflicts of interest, in PDF format, describes situations where a conflict of interest might exist and details how NBI responds to such conflicts.

On March 1, 2010, the Canadian Securities Administrators issued an exemptive relief allowing NBI Funds, subject to certain terms and conditions, to purchase equity securities of a reporting issuer during the period of distribution of the securities pursuant to a private placement and for the 60-day period following completion of the distribution, notwithstanding that a related underwriter acted as underwriter in connection with the distribution of securities in the same class. A full copy of the decision is available at www.sedar.com.

The governments of certain provinces, such as Quebec and New Brunswick, have adopted regulations requiring holders of unclaimed property to make reasonable efforts to find and contact the rightful owners, if their last known address is in one of these provinces. If all efforts taken by the holders are unsuccessful, they must make the information concerning unclaimed property accessible to the public in order to facilitate the return of the property to its owner.

If these regulations apply to you, i.e., if you are an owner of unclaimed property, you can refer to the online database of unclaimed property for the province in question:

• Quebec: The database is managed by Revenu Québec and can be accessed at https://www.revenuquebec.ca/en/unclaimed-property/searches/register-of-unclaimed-property/
• New Brunswick: The database is managed by the Financial and Consumer Services Commission and can be accessed at https://www.fundsfindernb.ca/en-US/

Holding Canadian investment funds has specific tax implications for U.S. persons residing in Canada. Consult your tax specialist for advice and information to determine if a Canadian investment fund is right for you.

NBI is committed to the highest standards of ethics and transparency, and makes every effort to provide the top-quality service you deserve. Read the document A commitment you can trust for more information about your relationship with NBI.

Borrowing to invest is much riskier than investing from cash on hand. Here are some risks and factors that you should consider before borrowing to invest.
 

Is this strategy 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 your 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.
• Regardless of whether your investments show a gain or a loss, you will still have to pay back the loan with 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.
• Even if the investments go up in value, you may still not make enough money to cover the costs of borrowing.

Tax consequences

• 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 past deductions may be restated. You should consult a tax professional to determine whether your interest costs will be deductible before borrowing to invest. An advisor should discuss with you the risks of borrowing to invest.