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Canada’s Financial System
Canada’s financial system is comprised of financial institutions (such as banks), the financial markets, and payments system. It is the channel through which savings become investments, and through which monetary transactions are transferred and settled.
Central to Canada’s financial system is the Bank of Canada (BoC). The BoC works to promote the safe and efficient operation of the system by:
- Providing liquidity to the system
- Giving financial policy advice
- Overseeing major clearing and settlement systems
- Providing banking services to these systems and their participants
Canada’s Banking System
Canada’s banks are federally regulated and chartered in accordance with the Bank Act. Banks in Canada are grouped into three schedules:
Schedule I banks are domestic banks authorized to accept deposits.
Schedule II banks are foreign bank subsidiaries authorized to accept deposits. HSBC Bank Canada is a Schedule II bank.
Schedule III banks are foreign bank branches of foreign institutions authorized to conduct banking business – with certain restrictions – in Canada.
Financial Environment
Canada enjoys one of the strongest economies in the world. Its strength is usually attributed to:
- Its natural resources
- The strength of its manufacturing and construction industries
- The health of its financial and service sectors
- Dynamic trade relationships
- Ability to compete globally
Canada’s biggest trading partner is the United States.
Foreign Exchange
Imports and exports play a significant role in Canada’s economy. For this reason, foreign exchange and the exchange rate – particularly against the U.S. dollar – is very important.
Canada has a floating exchange rate; it has no set value against any other currency. The exchange rate is affected by international supply and demand. On an average day, $CAD 100 billion is bought and sold on international markets.
Canada’s Taxation System
Canada collects money in the form of taxation to help pay for government programs and services. The Canada Revenue Agency (CRA) is responsible for the administration of this system.
Though the federal government charges a Goods and Services Tax (GST) and many provinces charge a Provincial Sales Tax (PST), the main form of taxation in Canada is that placed on employment income.
Canada has a tiered income tax system. The more an individual earns, the greater their rate of taxation. In addition to employment income, the federal government also taxes income earned from investments, such as interest and dividend incomes.
For more information about Canada’s taxation system, please speak with your professional tax advisor.
Investing With HSBC & HSBC Premier
Through your Premier Relationship Manager you have access to a full range of investment and wealth solutions+ offered or supported by HSBC professionals in Canada and around the world.
Your Premier Relationship Manager will assess you wealth needs and:
- Guide and help you in opening any registered accounts you might require – such as Registered Retirement Savings Plans (RRSPs) and Registered Education Savings Plans (RESPs)
- Guide and help you in starting to build a portfolio with term deposits, Guaranteed Investment Certificates (GICs), and HSBC Mutual Funds
- Connect you, as required, with the appropriate HSBC professional for specialized wealth and retirement planning, estate and trust planning, full-service investment advice++ or a self-directed investing experience
Investment Advice
Our specialized investment services are designed to assist you:
- Build upon what you’ve already created
- Enjoy the retirement lifestyle of your choosing
- Ensure a secure future for you and your family
Access to HSBC’s global platform and array of wealth management and investment solutions will help ensure you are provided with the personalized portfolio solution+++ required to meet the investment needs of you and your family.
Your Premier Relationship Manager will guide you to the advice and advisor best suited for you.
Self-Directed Investing
Take control of your self-directed investments through HSBC InvestDirect++++, or enjoy additional benefits through the HSBC InvestDirect Prestige Program. Trade in Canada, U.S., Hong Kong, London, Paris, and Frankfurt online, and in over 30 global markets by phone. Make sound, well-researched investments decisions with access to award winning research, industry-leading tools, and multi-currency settlement capabilities.
Trust & Estate Planning
The team of specialists at HSBC Trust+++++ can assist you with your personal trust, tax, and estate planning needs, and with executor and Agent for executor services. Whether in response to a specific situation or as part of an integrated financial or estate plan, they can help you determine the most effective way to minimize probate and income taxes and transition your wealth to future generations.
Find out how we can help you. Speak to your Premier Relationship Manager or call us at 1-866-233-3838.
HSBC Premier - Live life without boundaries
Discover how HSBC Premier can help you live life without boundaries and explore the world with confidence:
Call 1-866-233-3838
Visit your local branch
Interested in HSBC Premier?
We can help you with all your international banking needs, prior to arriving in or leaving Canada.
Eligibility for HSBC Premier is subject to meeting qualification requirements. Monthly banking package fee applies. Please ask in branch for details.
+Family Financial Planning and Wealth Planning offered by HSBC Premier Wealth Planning, a division of HSBC Securities (Canada) Inc., a wholly owned subsidiary of, but separate entity from, HSBC Bank Canada, Member CIPF.
++HSBC Securities (Canada) Inc. is a wholly owned subsidiary of, but separate entity from, HSBC Bank Canada. Member CIPF.
+++The Private Investment Management service is a discretionary portfolio management service offered by HSBC Global Asset Management (Canada) Limited (“HSBC Global Asset Management”). Under this discretionary service, assets of participating clients may be invested by HSBC Global Asset Management, where appropriately registered in the applicable jurisdiction, in securities, including but not limited to, stocks, bonds, pooled funds, mutual funds and derivatives. Commissions, trailing commissions, management fees and expenses all may be associated with the use of the Private Investment Management service. Neither the Private Investment Management service nor any of the securities purchased as part of the Private Investment Management service are guaranteed or covered by the Canada Deposit Insurance Corporation, HSBC Bank Canada, or any other deposit insurer or financial institution. The value of an investment in or purchased as part of the Private Investment Management service may change frequently and past performance may not be repeated. HSBC Global Asset Management is a subsidiary of HSBC Bank Canada and provides its services in all provinces of Canada except Prince Edward Island and the Territories.
++++HSBC InvestDirect is a division of HSBC Securities (Canada) Inc. Member of CIPF.
+++++HSBC Trust Company (Canada) is a federally regulated trust company offering its services in every province and territory in Canada except Prince Edward Island.
1 The mortgage interest rate can be reduced by a maximum of 50% each month, by having the equivalent of 50% of your outstanding Mortgage Balance in linked deposits to calculate your interest rate for the following month.
2 APR (Annual Percentage Rate) calculation assumes no fees will be charged. 2.60% APR (Prime + 0.35%) is based on HSBC’s Prime Rate of 2.25% posted on April 22, 2009. Actual rate will vary depending on fluctuations in HSBC’s Prime Rate. These rates are valid for HSBC Premier customers only.
