OTTAWA – May 27, 2019 – Canada Deposit Insurance Corporation is laying the groundwork to strengthen protection for deposits held in trust at member institutions with the publication in the Canada Gazette (Part 1) of CDIC’s Co-owned and Trust Deposit Disclosure By-law.
The proposed By-law supports recent legislative amendments to modernize CDIC’s deposit insurance framework including strengthening the rules for deposits held in trust and for nominee brokered deposits. CDIC issued a consultation paper (PDF, 1.5 MB) for the proposed By-law in July 2018.
Once approved, the By-law will take effect on April 30, 2021, to align with the coming into force of the legislative amendments on trust deposits.
“CDIC needs to ensure the billions of dollars of CDIC-protected savings that Canadians have in trust deposits can be quickly and accurately reimbursed in the event of a failure,” says Peter Routledge, CDIC President and Chief Executive Officer. “Changes to the rules regarding trust deposits mean we must work closely with financial stakeholders, including trustees, nominee brokers and member institutions, to strengthen disclosure of beneficiary information and to clarify CDIC’s coverage rules for trust deposits, for the benefit of Canadian depositors.”
The Co-owned and Trust Deposit Disclosure By-law would replace the current Joint and Trust Account Disclosure By-law.
Those interested in providing comments on the By-law are invited to do so within 30 days of publication.
CDIC is a federal Crown corporation established in 1967 to protect the savings of Canadians, and we contribute to financial stability by safeguarding over $792 billion in deposits at more than 80 member institutions. As resolution authority, we are responsible for handling the failure of any of our members, from the smallest to the largest. Our members include banks, federally regulated credit unions as well as loan and trust companies and associations governed by the Cooperative Credit Associations Act that take deposits. We are funded by premiums paid by member institutions and do not receive public funds to operate. We have resolved 43 member failures affecting some two million Canadians. No one has lost a dollar of deposits under CDIC protection.
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Director, Communications and Public Affairs