November 28, 2016

Sun Life to issue special payments from CI and UBS to affected plan members

In the April 18th issue of GRS Matters, we informed you that CI had provided Sun Life Financial Group Retirement Services (GRS) with payment representing the interest income that should have been earned by plan members invested in certain CI funds.

The payment was necessary because of an administrative error, where interest income earned by the funds was not recorded as an asset of the funds. The CI funds impacted by this error on our Core investment platform are all in the CI Portfolio Series.

New – UBS special payments
In addition to updating you on the CI payments that will be made to affected plan members, we also want to inform you of another issue for which special payments will be made, involving certain funds of UBS Asset Management (UK) Ltd. (UBS).

The UBS special payments relate to a finding by UK regulators in 2014 that UBS had erroneously been paying for some ineligible index and market data services out of equity dealing commissions from 2008 to 2013. The UBS funds on our platform that were impacted by this error were:

  • the former UBS (Canada) Canada Plus Equity Fund
  • the former UBS (Canada) Global Equity Fund
  • the former UBS (Canada) International Equity Fund

The plan for making payments
Affected plan members are now owed special payments from these investment managers to ensure they are put back in the same financial position they would have been in had these errors not occurred. As your group retirement service provider, Sun Life Financial has agreed to distribute payments to plan members on behalf of these investment managers.

Beginning December 02, 2016, we will be making both CI and UBS special payments to impacted plan members. Active plan members will receive a deposit to their plan member accounts. Inactive plan members will be paid by cheque.

There is no action required of you as a result of this notice.

Please contact your Sun Life Financial Group Retirement Services representative.