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.

Legislation and by-laws

  1. CDIC Act
  2. By-laws with requirements for Member Institutions
  3. Exemption from Deposit Insurance By-laws
  4. Other By-laws
  5. Governor in Council Regulations
  6. Other Documents

1. CDIC Act

By-law Overall Purpose Guidance Documents
Canada Deposit Insurance Corporation Act The CDIC Act establishes the Canada Deposit Insurance Corporation and sets out its objects and powers, including the power to make By-laws.

2. By-laws with requirements for Member Institutions

By-law Overall Purpose Guidance Documents Consultations
Deposit Insurance Information By-law (DIIB) This By-law sets out the representations that can be made about deposit insurance and CDIC membership; the requirements with respect to the posting of the CDIC membership sign and brochure at branches/websites; and the requirements with respect to negative stamping.
Differential Premiums By-law This By-law classifies member institutions into categories on the basis of risk for premium assessment purposes. It also includes the premium penalty for non-compliance with the Data and System Requirements By-law and the Resolution Planning By-law.
Deposit Insurance Policy By-law The By-law stipulates terms and conditions of a member’s policy of deposit insurance.    
Data and System Requirements By-law (DSRB) This By-law sets out the data and system requirements members must have in place to facilitate a fast insurance determination.
Joint and Trust Account Disclosure By-law (JTDB) This By-law sets out the time, form and manner in which a joint interest, a trusteeship or the interest of a beneficiary in a deposit must be disclosed on the records of a member institution in order to get the benefit of additional separate coverage for joint and for trust accounts.
Resolution Planning By-law This By-law establishes a statutory framework pursuant to which DSIBs submit and maintain resolution plans that are critical to support resolvability and financial sector stability.
Prescribed Practices Premium Surcharge By-law This By-law sets out the types of practices in which a member is engaging that may warrant assessing a premium surcharge.    

3. Exemption from Deposit Insurance By-laws

Also known as the Opting Out By-laws. Under the CDIC Act, wholesale banks can opt out of CDIC membership. There are 5 by-laws related to this matter.

By-law Overall Purpose Guidance Documents
Exemption from Deposit Insurance By-law (Exemption Fee) The CDIC Act establishes the Canada Deposit Insurance Corporation and sets out its objects and powers, including the power to make By-laws.  
Exemption from Deposit Insurance By-law (Foreign Currency Deposits) This By-law describes the rate of exchange that shall be applied on any day in determining the amount in Canadian dollars of a deposit in a currency of a country other than Canada.  
Exemption from Deposit Insurance By-law (Interest on Deposits) This By-law describes the manner in which interest payable on deposits would be calculated.  
Exemption from Deposit Insurance By-law (Notice to Depositors) This By-law requires opting-out institutions to provide its depositors with notice in writing that their deposits will no longer be insured in whole or in part by the Corporation.
Exemption from Deposit Insurance By-law (Prescribed Deposits) This By-law describes certain prescribed deposits that are excluded from deposit insurance coverage.  

4. Other By-laws

By-law Overall Purpose
Discretionary Interest By-law This By-law prescribes the rate of interest to be paid in a payout scenario where CDIC chooses to pay interest from the date of winding-up to the date of payout.
Interest Payable on Certain Deposits By-law This By-law prescribes the rules with respect to the payment of interest on index-linked deposits in a payout scenario.
Application for Deposit Insurance By-law This By-law sets out the application process for provincial members.
Deposit Insurance Application Fee By-law This By-law sets the application fee ($20,000) for provincial membership.

5. Governor in Council Regulations

By-law Overall Purpose
Bank Recapitalization (Bail-in) Conversion Regulations (SOR/2018-57)  
Compensation Regulations (SOR/2018-59)  
Canada Deposit Insurance Corporation Notice Regulations (Compensation in Respect of the Restructuring of Federal Member Institutions)
Eligible Financial Contract Regulations (Canada Deposit Insurance Corporation Act)

6. Other Documents

Documents
Financial Administration Act
Interpretation Policy
Forward Regulatory Plan

For any questions regarding CDIC’s By-laws, please contact members@cdic.ca.

For older consultations and guidance documents, please see the Archives section.

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