The QIIP acceptance rates have dropped, but there is opportunity ahead.
It is true: the statistics on the acceptance rates for the QIIP have lowered in the last years. Although it may seem alarming, we believe it is important to explain the context and to remind our partners that in this case, the past is not indicative of the future.
The files currently being processed by MIDI are those submitted in October 2010, when there was tremendous pressure on the market to submit applications before the QIIP would change from a $400,000 program to a $800,000 program, and therefore to allow clients to benefit from a lower cost investment program.
These applications, because they were submitted in a crunch period, were often prepared in a rush and without the same extent of due diligence that we now see today. As a result, several of those files have received refusals and even rejections by MIDI for a number of factors: incomplete declarations, incoherent declarations and documentation, missing documents, missing explanations on source of funds, etc.
It is also worth noting that MIDI has spent the last few years trying to clear its inventory, and has therefore developed new methods to do so faster. This includes the more widespread use of file rejections, as well as the added possibility of refusing applications without a selection interview, adopted only a few years ago. These methods are often controversial, and have led to vigorous objections from the industry, to an increase in administrative reviews and even lawsuits.
Despite our objections, we do not expect the acceptance rates to increase before this part of the inventory is fully processed by MIDI. The Ministry has informed us that this should still take a few more weeks. The Ministry has informed us that the $400,000 program inventory is expected to be entirely processed by the end of May. Another expected hurdle to acceptance rates will be the inventory of August 2013, which was selected by a random draw, and which may have included some files of poorer quality and left aside good ones.
But we see promising opportunity ahead. Since 2010, the industry has refined its work methods, and is doing more due diligence on files before submissions. It is increasingly focused on the quality of applications rather than quantity, and has adapted to bring its file review process more in line with the Ministry’s own methods.
This approach, of which RCI is now a clear industry leader, has allowed us to spot issues in a file and to bring the necessary corrections and clarifications prior to a file’s submission. Below is just an overview of what RCI has done in the last few years in order to maximize the chances of success of its files:
The RCI response:
- Providing more time and resources to offering quality and detailed file reviews of your clients’ applications, so as to ensure their completeness as early as possible in the application’s processing;
- Publication of a free Handbook to inform and assist the industry on developing the right methods to prepare a QIIP application;
- Publication of a selection Questionnaire available to all agents who wish to filter their client base and get a quick and free opinion on the file’s potential;
- Building a constructive dialogue with MIDI to remind its officers of the burden of proof, and on the challenges in acquiring certain documents that may be requested;
- Where necessary, defending the interests of our clients by way of administrative reviews and in Court;
The RCI team remains available to arrange training sessions and feedback sessions with agents and their case processing staff. We are also developing new tools to assist you in your practice and maximize success with your QIIP applications. Please contact your RCI account manager for more details.
Our combined efforts will necessarily have the effect of increasing acceptance rates in the future. While others may be tempted to focus on the current situation, we firmly believe in constructive work to seize this opportunity and submit the best quality files for the future. Great opportunity lies ahead, and we are standing by to assist you.
The upcoming intake is approaching fast, and now is the moment to prepare for it!
We look forward to working with you,
The RCI Team
Sylvain Payette, CEO
Marc-André Séguin, Attorney
WeChat ID: maseguin