On April 30, 2022, important changes to the rules governing deposit insurance protection for deposits held “in trust” at CDIC member institutions took effect. The changes impact certain trustees who hold deposits in trust for clients in a professional capacity. Please check back here regularly for updates about professional trustees and trust deposits.
It’s important to note that not all trustees are Professional Trustees. Only trustees who meet the following definition under the CDIC Act are Professional Trustees:
A Professional trustee means any of the following who is not a nominee broker:
- (a) the public trustee of a province or a similar public official whose duties involve holding moneys in trust for others;
- (b) a federal, provincial or municipal government, or a department or agency of such a government;
- (c) a lawyer or partnership of lawyers, a law corporation, or a notary or partnership of notaries in the province of Quebec, when they act in that capacity as a trustee of moneys for others;
- (d) a person who is acting as a trustee of moneys for others in the course of business and is required by or under a statute to hold the deposit in trust;
- (e) a person who is acting as a trustee of moneys for others in the course of business and is subject to the rules of a securities commission, stock exchange or other regulatory or self-regulating organization that audits compliance with those rules; or
- (f) a regulated federal or provincial trust company acting in the capacity of a depositor.
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)
Rules for Trustees:
Please refer to the questions below if you are a Professional Trustee and wish to know more about the new rules.
- Why are these new rules important for trustees?
- How do the new rules differ from the old ones?
- Do the new rules change how my deposits are protected?
- How do I designate an account a PTA?
- How do I maintain and provide information for PTAs?
- How do I stay informed?
Why are these new rules important for trustees?
The new rules are important because they affect how deposits held by professional trustees receive deposit insurance protection, and how CDIC would address these deposits in the event of failure of a CDIC member institution.
How do the new rules differ from the current ones?
The new rules allow eligible professional trustees to designate certain accounts as professional trustee accounts (PTAs). By doing so, these trustees are no longer required to report beneficiary information to CDIC member institutions for these accounts, and instead only need to provide beneficiary information to CDIC upon CDIC’s request.
For more information, please consult this overview of the changes:
Do the new rules change how my deposits are protected?
No. CDIC continues to insure eligible deposits in trust to a maximum of $100,000 per beneficiary.
How do I designate an account a PTA?
Beginning April 30, 2022, Professional Trustees have the choice of designating one or more of their accounts PTAs. To designate an account a PTA, the Professional Trustee must provide the CDIC Member Institution which holds the account they wish to designate:
- An attestation indicating that they are a Professional Trustee; and
- The Professional Trustee’s contact information.
Upon providing an attestation and contact information, or as a part of the attestation, the Professional Trustee must request the account(s) be designated a PTA.
Each CDIC Member Institution may set out its preferred method of attestation. To determine how to provide an attestation to your CDIC Member Institution(s), please contact them directly.
How do I maintain and provide information for PTAs?
For accounts designated Professional Trustee Accounts, the Professional Trustee must maintain a record of beneficiary information associated with those accounts.
Upon request by CDIC, the Professional Trustee must provide that information to CDIC. CDIC lays out the specifications and formatting of the required information in the “Professional Trustee Data Requirements” document. To find out what information must be recorded, and how it must be provided, visit Professional Trustee Data Requirements.
How do I stay informed?
We encourage you to check back here regularly for updates about professional trustees and trust deposits. You can also subscribe to Industry News to receive notifications when new information is posted to this section.
CDIC is committed to fostering awareness and understanding of the new framework among trustees. We welcome your feedback, including any questions or comments. Please feel free to contact us at email@example.com. You can also follow us on social media for regular updates and information about deposit insurance. We’re here to help!