View Full Version : Benefit Responsiveness?
02-09-2008, 05:45 PM
Whatsup! In the DFCA Ch 5 stuff they mention "benefit responsiveness", specifically regarding funding arrangements. What does "benefit responsiveness" mean? Thanks! I hope everyone's studying is going well (ie: better than mine!)
02-09-2008, 08:06 PM
On page V-10 at the bottom, it states:
"Benefit Responsiveness refers to the GICs provisions for providing liquidity at book value for participants' plan withdrawals/transfers out and for accepting participants' future deposits/transfers in at the guaranteed rate."
That's a long sentence... I think this is referring to the fact that many GICs have rules either limiting the amount of withdrawals or deposits, or at least limiting the value they're given (e.g. maybe you can deposit however much you want after you open the GIC, but we won't guarantee the rate on these additional deposits). So "benefit responsiveness" is just the degree to which the company has such restrictions.
02-09-2008, 09:11 PM
Ok, I see, so the sentence is saying the more benefit responsive the product the more likely features like additional deposits at a guaranteed rate would be in the GIC.
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