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Speak with your financial advisor about opening a non-registered account and for more information on the types of investments you can hold within it.
For accredited investors only
This website is intended for use by Accredited investors (as such term is defined in the Securities Act (Ontario) or National Instrument 45-106 - Prospectus Exemptions, as applicable) resident in, or otherwise subject to the securities laws of, any province or territory of Canada, or pursuant to such other exemptions from the prospectus requirements under applicable securities legislation.
Examples of who qualifies as an accredited investor:
- an individual who, either alone or with a spouse, beneficially owns financial assets having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds $1,000,000;
- an individual who beneficially owns financial assets having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds $5,000,000;
- an individual whose net income before taxes exceeded $200,000 in each of the two most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the two most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year;
- an individual who, either alone or with a spouse, has net assets of at least $5,000,000;
- a person (other than an individual or investment fund) that has net assets of at least $5,000,000 as shown on its most recently prepared financial statements provided that such person has not been created solely to purchase or hold the Units being purchased; and
- a person acting on behalf of a full managed account managed by that person, if that person is registered or authorized to carry on business as an adviser or the equivalent under the securities legislation of a province or territory of Canada or a foreign jurisdiction.
"Financial assets" generally means cash and securities and "related liabilities" means liabilities incurred or assumed for the purpose of financing the acquisition or ownership of financial assets, or liabilities that are secured by financial assets.
This website is not intended to constitute an offer of units of Fidelity Alternative Real Estate Trust (the "Fund"). The information contained herein is qualified in its entirety by reference to the Offering Memorandum ("OM") of the Fund. The material available on this website is published for informational purposes only. It does not constitute a solicitation of an offer to buy or an offer to sell securities, nor should the information be relied upon as investment advice. Units of the Fund are generally only available to Accredited Investors (as described above). The OM contains information about the investment objectives and terms and conditions of an investment in the Fund (including fees) and also contains tax information and risk disclosures that are important to any investment decision regarding the Fund.
Non-registered accounts by the numbers
Frequently asked questions
What is a non-registered account?
A non-registered account is a type of investment account subject to tax when you earn income on investments held in the account. This account is also sometimes referred to as a taxable or open account. There are two common types of non-registered accounts (cash and margin) that can be opened by individuals or jointly with spouses or common-law partners, and there are many other alternatives.
Why invest in a non-registered account?
A non-registered account is one of several accounts you can use to save toward your goals. It can be useful if you’ve reached your contribution limit on a Registered Retirement Savings Plan (RRSP), Tax-Free Savings Account (TFSA), First Home Savings Account (FHSA) or Registered Education Savings Plan (RESP).
Who is eligible to open a non-registered account?
You can open a non-registered account if you are a Canadian resident and the age of majority in your province or territory. There is no age limit on a non-registered account, unlike an RRSP, which must be withdrawn or converted into a Registered Retirement Income Fund (RRIF) in the year you turn 71 years old. So, this account can be a good option if you’re over, or planning on investing over, the age of 71.
How do contributions and deductions work?
Unlike registered investment accounts, there is no contribution limit for non-registered accounts, so you can save as much as you want without penalty. However, your contributions to a non-registered account are made with after-tax dollars and are not tax-deductible, so you won’t receive a tax deduction, as you do with an RRSP or FHSA contribution.
How are income and gains treated within a non-registered account?
Investment income earned and capital gains realized in a non-registered account are taxable, unlike in a TFSA, for example, where they are tax-free.
What types of investments can you have in a non-registered account?
A non-registered account allows you to invest in a wide range of assets, such as mutual funds, exchange-traded funds (ETFs), stocks, bonds and other products.
How can funds be withdrawn or transferred from a non-registered account?
As with contribution limits, there are no withdrawal limits for non-registered accounts. Withdrawals will result in capital gains or losses. If you choose to transfer funds from a non-registered account to a registered account (such as an RRSP, TFSA, FHSA or RESP), there could be tax consequences.
How is a non-registered account treated in the context of a spouse or common-law partner?
Only the non-registered account holder can make contributions to their account. You cannot contribute to your spouse’s or common-law partner’s account; however, you can gift funds to your partner, and they can make a contribution to their account. Unlike contributions to a TFSA, if you gift funds to your spouse, attribution will apply.
In the event of a marriage or common-law breakdown, you may transfer funds from your non-registered account to your former partner’s as part of a legal settlement. Such transfers can often occur on a tax-deferred basis, provided certain conditions are met.
What happens when you close a non-registered account?
You can hold a non-registered account for an unlimited amount of time, unlike some registered accounts. To close a non-registered account, contact your financial institution to initiate the process. Note that you may be required to pay a closing fee.
What happens to a non-registered account upon the account holder’s death?
There is a deemed disposition of assets at fair market value (FMV) on death. If a non-registered account is transferred to a spouse or common-law parter, capital gains may generally be deferred through a spousal rollover. If the account is left to anyone other than a spouse or common-law partner in your will, including adult children, the deemed disposition at FMV will apply, which may result in taxable capital gains or losses. This tax will be owing on the deceased’s terminal return.
How is a non-registered account treated for non-residents of Canada?
You can continue to make contributions to your existing non-registered account after leaving Canada; however, any income earned will be taxable in Canada. Treaty relief may be applicable, depending on what jurisdiction you move to.
Non-registered account education centre
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