Changes to deposit insurance affecting Nominee Brokers
The Government of Canada has announced that changes to CDIC deposit protection originally slated for April 30, 2021 are deferred by one year and will now come into force on April 30, 2022. Content on this page has been updated to reflect the new coming into force date of April 30, 2022
OTTAWA – February 6, 2020 – Effective April 30, 2022 there will be a new framework for how deposit insurance is provided for deposits held “in trust” at Canada Deposit Insurance Corporation (CDIC) member institutions (MIs) including those placed through nominee brokers. This new framework sets out the requirements that nominee brokers must meet to ensure the deposits they hold for their clients (i.e. the beneficiaries) are protected.
To develop solutions for implementing the new framework, CDIC has partnered with industry in a Brokered Deposit Advisory Group (BDAG). The advisory group supports discussion among stakeholders affected by these rules and promotes the development of sound industry best practices that help ensure a strong and coordinated implementation of the deposit insurance rules.
Further details about the new requirements for nominee brokered deposits and advisory group are available in the Financial Community section of the CDIC website.
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