How are deposits held in trust protected by CDIC?
Deposits held in trust are considered a separate insurance category. CDIC insures these deposits up to $100,000, and this protection can extend to each beneficiary named in a trust, provided the trustee has maintained the required beneficiary information on the records at the failed member.
How does CDIC calculate the insurance payment for general trustees?
CDIC uses the information on the records of the failed member to calculate coverage.
Trust deposits are protected up to $100,000, and this protection can extend to each beneficiary named in a trust, provided the trustee has maintained the required beneficiary information on the records at the failed member.
As a general trustee, am I required to provide beneficiary information to CDIC when a member institution has failed?
No. At the time of failure, a trustee that is neither a nominee broker nor a professional trustee, does not need to provide CDIC with any beneficiary information.
CDIC will calculate deposit insurance based on the deposit and beneficiary information on the records of the failed member. The amount based on this calculation will be sent to you as the trustee for the deposit, on behalf of the beneficiaries.
I am a general trustee who has placed deposits at a failed member. Will CDIC contact me regarding my deposits?
No. If you provided the required beneficiary information to the member prior to its failure, CDIC will have the necessary information to automatically calculate and reimburse you for eligible deposits up to $100,000 per beneficiary.
CDIC will issue any deposit insurance payments directly to you as the trustee of record, on behalf of the beneficiaries named on the account.
I am a beneficiary with a general trustee. Will I get reimbursed by CDIC or by the trustee?
If you have deposits held in trust at the failed member, CDIC will reimburse the trustee directly.