CDIC requires Member Institutions (MIs) to provide notices to trustees requesting updated beneficiary information for accounts held in trust on an annual basis.
January 1st, 2022 – April 30th, 2022
New Trustee Notifications and Early Professional Trustee Attestation
- MIs to distribute a notification to trustees advising them that their disclosure responsibilities are changing due to new rules governing how deposit insurance protection is provided for trust deposits by CDIC that will take effect on April 30, 2022.
- Certain MIs should look to accept Professional Trustee Attestations, and flag Professional Trustee Accounts, in advance of the in-force date of April 30th, 2022.
- Trustee depositors should contact their MI to determine if the early attestation process is available to them.
- The templated 2022 Trustee Notification developed by CDIC, and the Canadian Bankers Association’s Professional Trustee Committee is available at: Template – 2022 Trustee Notification.
April 30th, 2022
New framework and requirements for deposits held in trust take effect
- Depositors who hold eligible deposits in trust at MIs must provide the required beneficiary information on an ongoing basis to ensure strong CDIC deposit insurance protection.
- Depositors who qualify as Professional Trustees can choose to, designate one or more accounts as Professional Trustee Accounts to benefit from more streamlined disclosure requirements for those accounts.
- MIs to distribute to Trustee Depositors each March a reminder to provide and update trustee depositor and beneficiary Information, in line with the rules that came into effect on April 30, 2022.
- MIs to distribute to Professional Trustee Depositors each March a reminder notice informing them to provide the member institution an annual re-attestation and to update information on the records of the MI, as per the disclosure requirements for Professional Trustees.
Professional Trustee re-attestations are due
- Upon receiving notification from MIs, or at any time during the month of April, Professional Trustees to re-attest for accounts designated Professional Trustee Accounts, Professional Trustees must provide a re-attestation to their Member Institution(s).
- Professional Trustees should be aware that the failure to provide a re-attestation will result in the loss of the Professional Trustee Account designation.
- Accounts not designated Professional Trustee Accounts are considered general trust accounts until such time that the obligations required to designate the accounts as Professional Trustee Account are fulfilled.