Family Single Student Education Savings Plan changes approved
Originally published on: May 31, 2019
Note: On February, 27, 2023, Knowledge First Financial Inc. and the Knowledge First Foundation became Embark Student Corp. and the Embark Student Foundation, respectively.
Knowledge First Financial Inc. today announces, following a subscriber vote, the approval from Family Single Student Education Savings Plan (Single Student Plan) customers to eliminate depository fees and create a consolidated Management Fee of no greater than 1% per year. These changes reflect a modest increase in the overall fees paid by customers and results in more certainty and transparency regarding fees associated with the Single Student Plan. This Management Fee is comparable or lower to similar RESP plans.
Knowledge First Foundation, a Canadian not-for-profit corporation, is the sponsor of the Single Student Plan and other education savings plans. Since the Single Student Plan was introduced in November 1994, Administration and Depository fees have not increased.
The all-in consolidated Management Fee for the first year, following implementation by July 1, 2020, will be between 0.75% and 0.80% per year, plus applicable taxes. This compares to the current fees including Depository fees, Administration, Custodial and Portfolio management fees of approximately 0.72%, plus applicable taxes, for the year ended December 31, 2018.
To carry out the proposed plan changes, a vote ‘FOR’ by a majority of the votes cast by Single Student Plan customers was required. Votes were cast at the Special Meeting held at offices of Knowledge First Financial on May 30, 2019 with 87% votes cast in favour of the proposed changes.
About Knowledge First Financial
Canadian families have relied on education savings plans offered by Knowledge First Financial for more than 50 years. Since 1965, payments from our Plans have reached $7.5 billion. Over the last 15 years, Knowledge First Foundation has further enhanced Education Assistance Payments to students by over $53 million. As at April 30, 2019, the company manages $6.4 billion in assets for more than 500,000 RESPs.
Knowledge First Financial Inc. is a wholly-owned subsidiary of Knowledge First Foundation and is the investment fund manager, administrator and distributor of Registered Education Savings Plans. Knowledge First Foundation is a not-for-profit Canadian corporation. The Foundation reinvests excess revenues in initiatives that support student success.
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