Investment Shares FAQs

What are the benefits of Investment Shares to Luminus Financial?

Investment Shares help strengthen the capital base, or financial foundation, of Luminus Financial. The funds will help Luminus Financial Services and Credit Union exceed financial capital regulations and provide Luminus Financial with the capital necessary to invest in new services and technology.

When can I redeem my shares?

Investment Shares may not be redeemed within the first five years after they are issued. After that time only 10% of the total shares issued can be redeemed annually, and a waiting list will be available for members to go on. However, precedent goes to estate accounts and any RRSPs that must be converted to RRIFs.

Are there any limitations on redemption of my Investment Shares?

Yes. By law Luminus Financial is only permitted to redeem 10% of its total Investment Shares outstanding at the end of the previous fiscal year.

In order of priority, redemptions will be made according to the following reasons:

  • Death
  • Expulsion from membership
  • Converting from an RRSP to a RRIF
  • All other requests are on a first-come, first-served basis

Can I sell my Investment Shares to another member?

Luminus Financial will try to accommodate these types of requests by matching members who want to sell their shares with those interested in purchasing them, however we cannot guarantee this. The transfer request must be approved by the Board of Directors, and the member purchasing these cannot exceed the $150,000 limit.

What is the planned dividend rate on my shares?

The dividend is determined each year by the Board of Directors. The size of the dividend can vary from year to year depending on the earnings of the credit union, however the first year has a 4% guaranteed return and for the rest of the 4 years, our target dividend is 3.00% above our 1 year weighted average term deposit rate.

How are dividends paid?

By default, dividends are paid in the form of interest into your chequing account, savings account or appropriate variable RRSP.

When are dividends declared?

Dividends are declared at the Annual General Meeting and paid after the Annual General Meeting.

A copy of the Offering Statement must be received and reviewed by all prospective purchasers. This FAQ is not an offering statement. Dividends on the investment shares are not guaranteed. The principal of and returns on investment shares are not insured by the Deposit Insurance Corporation of Ontario.

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