This section provides information and resources for CDIC member institutions, brokers and other stakeholders within the financial community as well as trustees.
The CDIC Act sets out how different types of deposits receive coverage under the deposit insurance framework. It specifies the key requirements that stakeholders in the financial community must meet to ensure that these deposits are protected by CDIC. As of April 30th, 2022, important changes to the rules for deposits held in trust are in effect and impact the broker community (nominee brokers), professional trustees and trustees who hold deposits in trust for others. Please refer to the appropriate sections below to see how these changes impact specific groups.
For CDIC member institutions, you will be able to find legislation, by-laws, guidance and necessary forms to help you comply with CDIC’s regulatory requirements. If you cannot find what you’re looking for or have any questions, please feel free to email us at firstname.lastname@example.org.
Brokers and Other Financial Professionals
Rules around deposit protection, especially for deposits held in trust, can be complicated. With changes to reporting requirements in effect as of April 30th, 2022, it is especially important to familiarize yourself with how trust deposit coverage works. To help you, CDIC has developed resources to explain how deposit insurance coverage works for the deposits you place for your clients and the various requirements that must be met to ensure these deposits are protected in the event of a bank failure.
For simplicity, many of our documents and resources refer to “brokers.” In these instances, a reference to brokers includes financial advisors, securities dealers, investment dealers, broker-dealers, and others who purchase deposits from financial institutions that are members of CDIC either on behalf of (i.e. in nominee name) or in the name of their clients (i.e. in client name).
CDIC’s rules for trust deposits changed on April 30, 2022. These changes introduced new categories of trustees with unique disclosure requirements.
The categories of trustees include:
- Trustees who hold deposits in trust at a CDIC Member Institution and who qualify as a Professional Trustee (Professional Trustees); and
- Trustees who hold deposits in trust at a CDIC Member Institution in various capacities (professional or otherwise) but do not qualify as a professional trustee (Trustees)
To further assist trustees and professional trustees in understanding and implementing the new requirements, CDIC has developed the following downloadable presentation which provides an overview of the legislative amendments. It is strongly recommended that all trustees download and review the presentation.
Not sure if you hold funds in a professional capacity? Please use the Trustee Decision Tree to find out:
Infographic – Trustee Decision Tree (PDF, 150 Kb)
Trustees who hold eligible deposits in trust at a CDIC Member institution continue to receive separate CDIC deposit insurance protection on those deposits. To ensure appropriate deposit insurance coverage, Trustees must adhere to new disclosure requirements. For more information about the new disclosure requirements and how to meet them, please consult For Trustees.
Trustees who hold eligible deposits in trust at a CDIC member institution in their professional capacity may qualify as a Professional Trustee. Professional Trustees have the option to designate accounts as Professional Trustee Accounts, which have less onerous disclosure requirements. For more information on who qualifies as a Professional Trustee, and how the amended disclosure requirements work, please consult For Professional Trustees.
If you can’t find what you’re looking for or have any questions, please feel free to email us at email@example.com.