What Happens in a Failure

FAQs for Brokered Deposits

What is a brokered deposit?

A brokered deposit is a deposit made by a broker or investment dealer at a CDIC member institution for one or more of their clients. There are two types of brokered deposits, and the reimbursement process will vary by deposit type: 

  • Deposits made in-nominee-name (nominee brokered deposits): Brokers place the deposit and hold it as a nominee (i.e., in trust) on behalf of their clients.
  • Deposits made in-client-name: Brokers place the deposit directly in the name of their clients.

For more information about deposit insurance for brokered deposits, please see brokers and other financial professionals

How are nominee brokered deposits protected by CDIC?

Eligible deposits held by brokers as a nominee (i.e., in nominee-name) for their clients are treated by CDIC as deposits held in trust. The nominee broker is the trustee depositor on record at the member institution, and their clients are the beneficiaries.

Coverage is extended to nominee brokered deposits under the trust deposit insurance category for up to $100,000 per beneficiary, provided that nominee brokers meet key disclosure requirements

If the nominee brokered deposits are placed under another CDIC insured category (e.g., RRSP, RESP, RRIF, RDSP, FHSA or TFSA) then these deposits can receive separate CDIC insurance coverage of up to $100,000. For more information on how CDIC protects eligible deposits at each of our Member Institutions, please visit Your coverage.

How will CDIC provide insurance payments for in-client name brokered deposits?

CDIC will calculate deposit insurance coverage based on the insurance categories within which brokers placed the deposits. In this instance, CDIC will provide payment directly to the client and not the broker.

How will CDIC provide insurance payments for in-nominee name brokered deposits?

CDIC will calculate the applicable deposit insurance coverage based on the insurance categories within which brokers placed the deposits. CDIC will communicate with nominee brokers to inform them of the process and timelines to reimburse insured deposits. The insurance payments are based on the information collected by CDIC from the failed member and the affected nominee broker. In this instance, CDIC will only provide payment to the affected brokerage firms and will communicate the expected timeframes for receipt of the insurance payment and accompanying statement to those brokers. Each firm is responsible for distributing the reimbursement of insured deposits to their client/beneficiaries.

How long will it take for CDIC to pay nominee brokered insured deposits?

Nominee brokers are required to provide updated beneficiary information within three (3) business days upon request by CDIC. After receiving beneficiary information from the nominee broker, CDIC expects to pay nominee brokered deposits, as soon as possible, and in most cases, it will be within days. However, if the nominee broker submits incomplete beneficiary information, then the payments could be delayed.

I am a broker/agent for a brokerage firm. What can I do to accelerate the payment process for my clients?

For reasons of privacy and confidentiality, CDIC can only discuss deposit insurance payments with the designated brokerage contact provided to CDIC. CDIC is prohibited from sharing any information with individual brokers, broker agents or directly with the clients of the firm.

CDIC handles the nominee broker reimbursement process directly with the brokerage firm’s management. Any questions individual brokers or agents might have should be raised with their firm. CDIC will advise on timeframes for reimbursement of in-nominee-name deposits with brokerage firms.

For deposits that brokers may have placed with the failed member in their clients’ name, CDIC will reimburse the funds directly to the client in whose name the insured deposit has been made.

As a nominee broker, how many days do I have to provide client/beneficiary information to CDIC?

Nominee brokers must provide beneficiary information to CDIC within three (3) business days following CDIC’s request of the required information.

CDIC will reach out to the designated Senior Officers of brokerage firms to communicate file transmission instructions and to coordinate the insurance payout process.

As a nominee broker, where can I find the Nominee Broker Data Requirements (NBDR)?

The specifications for formatting the nominee broker data submission can be found on the following page: Nominee Broker Data Requirements (NBDR).

I am a client of a broker who placed my money at a failed member. My broker has told me to call CDIC. How do I get my money back?

CDIC will calculate deposit insurance coverage based on the insurance categories within which brokers placed the deposits. How you get your money back will depend on how your broker placed the deposit.

If your broker placed your deposits in your name, then CDIC will reimburse you directly using the information in the failed member’s records.

If your broker placed your deposits in their name, then the broker is acting as a trustee on your behalf. In this instance, CDIC makes payments directly to your broker who will in turn contact you about next steps for handling your funds.

Please contact your broker if you have specific questions about your brokered deposits.

What if my client has more than $100,000 in nominee brokered deposits held at a failed institution?

CDIC protects eligible nominee brokered deposits held at a member institution to a maximum of $100,000 per deposit category per beneficiary. Depositors with deposits above the $100,000 limit can file a claim for unprotected balances with the court-appointed liquidator.

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