CDIC welcomes measures to strengthen deposit protection
OTTAWA – April 3, 2019 – Parliament approved changes to the Canada Deposit Insurance Corporation Act that will strengthen and modernize deposit protection.
CDIC today welcomes the announcement of the dates these amendments will take effect. The changes will occur in two phases, including:
Phase 1 (effective April 30, 2020)
- Expanded coverage to include eligible deposits held in foreign currency
- Extended coverage to eligible deposits with terms greater than 5 years
- Elimination of coverage for travellers cheques (CDIC member institutions no longer issue travellers cheques)
Phase 2 (effective April 30, 2021)
- Separate coverage for up to $100,000 in eligible deposits in Registered Education Savings Plans (RESPs) and Registered Disability Savings Plans (RDSPs)
- Mortgage tax accounts will no longer receive a separate $100,000 in coverage but will continue to be covered under other insurance categories.
- New requirements for deposits held in trust, including deposits held by nominee brokers for their clients, that enhance CDIC’s ability to extend protection to these deposits and reimburse them quickly after a CDIC member failure.
The phased implementation will allow CDIC, its member institutions and other stakeholders to make the necessary procedural or operational adjustments to accommodate the changes.
“CDIC has protected Canadians’ hard-earned savings for over 50 years,” said Peter Routledge, CDIC President and CEO. “These changes will strengthen and modernize our deposit insurance framework to ensure we keep pace with the way Canadians save their money.”
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