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Notice:

As of April 30, 2022, CDIC protection is expanded to include Registered Education Savings Plans and Registered Disability Savings Plans. There are also new rules for deposits held in trust. These changes are part of the Government of Canada’s commitment to modernize and enhance CDIC deposit protection to reflect how Canadians bank and save.

Deposits held in Trust

We protect eligible deposits held in trust separately from other deposits held by the trustee or a beneficiary in their own name at the same CDIC member institution, provided:

  1. There is a valid trust (established with or without formal documentation) as determined under the laws of the province or territory in which the trust is established;
  2. Required information about the trustee and the beneficiaries is disclosed on the records of the CDIC member institution prior to the failure of a member institution.

The requirements that trustees must meet for CDIC protection differ for different types of trustees, for example:

  • A trustee: e.g., a grandmother who deposits money in trust for her grandchildren (the beneficiaries) to use when they are adults.
  • A professional trustee: e.g., a lawyer who holds a down payment in trust for clients (the beneficiaries) buying a house.
  • A nominee broker: a broker who (holds a GIC in nominee name (i.e., in trust) for clients (the beneficiaries).

For deposits held in trust,  CDIC would aggregate all deposits placed by the trustee for the same beneficiary at the failed CDIC member institution. The total is insured to a limit of $100,000 per beneficiary if the trustee meets CDIC’s disclosure rules.

Learn more about how CDIC protects Trustees and Professional Trustees.

If you are a Nominee Broker, specific information about the disclosure requirements you must meet can be found under Changes to deposit insurance affecting Nominee Brokers.

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