Following the 2017 increase in the prime rate at the Bank of Canada, Manulife has increased the interest rate percentage charged on outstanding commission debt balances.
Starting January 1, 2018, the interest rate for outstanding advisor debts will increase from 4.07 per cent to 5.2 per cent annually. If an advisor is currently in a debit position, the change will not be reflected until their Jan. 31 – Feb. 6, 2018 compensation statements.
About debit balances and making payments
Any outstanding balances are automatically offset by incoming commissions and begin to incur interest after 30 days. The interest rate in effect is displayed on the bottom left corner on the first page of their compensation statement.
If an advisor has a debit balance and will not have enough incoming commissions to offset it within 30 days, they can make a lump sum payment before January 30, 2018.
If you have any questions about this change or how to make a lump sum payment, please contact the Distributor Contact Centre (DCC) at 1-800-838-7770 or by email at email@example.com.
Director of Distributor Relations & Learning