What are the eligibility criteria?
You must be a National Bank Direct Brokerage Distinctive Services
client or have $100,000 in assets in a non-registered account.
What types of securities are eligible for the program?
The fully-paid securities lending program is restricted to
securities from issuers listed on a Canadian or U.S. stock exchange
(including exchange-traded funds (ETFs)). Securities listed on an
exchange in Canada that meet at least one of the following criteria
can be included in the program:
- 6-month average volume weighted average price (VWAP) ≥
- 6-month average daily trading volume ≥ 100,000
- 6-month average free float market capitalization ≥
What if I change my mind after I enroll in the securities lending program?
You may withdraw from the program at any time by informing us in
writing at least 15 business days before your intended date of
withdrawal. Upon receiving your notice, Natcan Trust Company will
begin the process of recalling your loaned securities. Remember that
you maintain full economic ownership of securities out on loan and may
sell them or recall the loan at any time.
Can I sell securities that are out on loan?
Yes, you can sell your loaned securities. Call us at 1-888-902-0202
to recall your loaned securities so you can sell them.
Am I entitled to dividends on loaned securities?
Yes, you will continue to receive dividends on your loaned
securities. The dividends can be paid in cash, or you can participate
in a Dividend Reinvestment Plan (DRIP). An existing DRIP will remain
in place even if your securities are loaned out.
Can I exercise my voting rights?
You will retain all voting rights until your securities are lent.
Once your securities are lent, you renounce your voting rights and the
borrower may exercise them in your place. To exercise your voting
rights, you may recall loaned securities in accordance with the
Securities Lending Agency Agreement at least 10 business days prior to
the applicable record date.
Can I borrow funds from my margin account and still participate in
No. If you have a debit balance in your margin account, you may not
lend securities. We will recall loaned securities until the debit
balance is cleared.
What option transactions are permitted while my securities are out
Once a security is out on loan, you may no longer hold a short
option position, even if it is covered by stocks or by another option.
However, you may continue to acquire call and put options.