Nominee Brokered Deposit (NBD) Compliance Framework

In April 2022, amendments to the Canada Deposit Insurance Corporation Act introduced updated requirements for Nominee Brokered Deposits (NBD) under the Co-owned and Trust Deposit Disclosure By-law (COTDB).

These requirements support CDIC’s ability to make timely and accurate deposit insurance determinations and reimburse depositors in the event of a member institution failure.

Nominee Brokers must demonstrate that they have the systems, data, and processes in place to meet these requirements, including through annual attestation and CDIC’s recurring compliance testing.

The CDIC NBD Compliance Framework sets out how CDIC oversees and assesses compliance with these requirements.

The Nominee Broker Policies & Procedures (P&P) Guide for compliance with the COTDB helps support Nominee Brokers in meeting these expectations in practice and to better prepare for attestation and compliance testing. Nominee Brokers are expected to align their P&Ps with this Guide in advance of the May 2028 attestation cycle, with the intervening period used to progressively update and refine their P&Ps to meet the expectations set out in the Guide.

Please refer to the updated FAQ document for additional information and clarification on the Guide and CDIC’s expectations from Nominee Brokers.