Financial Community

Notice: The Government of Canada has announced that changes to the CDIC Act to modernize and enhance CDIC deposit protection will come into force on April 30, 2020 and April 30, 2021. PLEASE NOTE: Until then, current coverage rules apply.

CDIC’s Trust Disclosure Rules

We protect eligible deposits held in trust separately from other deposits held by the trustee or a beneficiary in their own name at the same CDIC member institution, provided:

  1. there is a valid trust (established with or without formal documentation) as determined under the laws of the province or territory in which the trust is established;
  2. the following information appears on the records of the CDIC member institution prior to the failure:
    • trustee names and addresses;
    • the fact that the eligible deposits are held by the depositor in trust for a beneficiary.

For fast reimbursement by CDIC, trustees should also provide their CDIC member institution with:

  • the full name and address of each beneficiary (some trustees are eligible to provide alpha-numeric identifiers in lieu of beneficiary names and addresses);
  • the portion of the trust belonging to each beneficiary (expressed as a percentage or dollar amount);
  • any changes to the information as of April 30th in each year

These rules are set out in the Schedule to the CDIC Act and the CDIC Joint and Trust Account Disclosure By-law.

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