Canada Deposit Insurance Corporation Deposit Insurance Information By-law

SOR/96-542

CANADA DEPOSIT INSURANCE CORPORATION ACT

Registration 1996-12-05

Canada Deposit Insurance Corporation Deposit Insurance Information By-law

The Board of Directors of the Canada Deposit Insurance Corporation, pursuant to paragraph 11(2)(f)Footnote a of the Canada Deposit Insurance Corporation Act, hereby makes the annexed Canada Deposit Insurance Corporation Deposit Insurance Information By-law.

December 4, 1996

Interpretation

 The definitions in this section apply in this By-law.

Act

Act means the Canada Deposit Insurance Corporation Act. (Loi)

CDIC

CDIC means the Canada Deposit Insurance Corporation. (SADC)

place of business

place of business means a location in Canada where a member institution carries on business and at which a person may make a deposit with the assistance of a representative of a member institution. (lieu d’affaires)

point of service

point of service means a location in Canada where a member institution carries on business and at which a person may, in person or by electronic means, commence a transaction to open an account with the member institution or to make a deposit with the member institution for a fixed term, but does not include a place of business. (point de service)

Return of Insured Deposits

Return of Insured Deposits means the form of return of insured deposits established by the Corporation in accordance with subsection 22(1) of the Act. (Déclaration des dépôts assurés)

  • SOR/99-385, s. 1;
  • SOR/2006-334, s. 1.

General

 No person shall make any false, misleading or deceptive representation with respect to

  • (a) what constitutes, or does not constitute, a deposit;

  • (b) what constitutes, or does not constitute, a deposit that is insured by the Corporation; or

  • (c) who is a member institution.

  • SOR/2006-334, s. 2.
  •  (1) When a member institution makes representations with respect to any of the matters referred to in paragraphs 2(a) to (c), the representations shall be made in accordance with sections 3.1 to 9.2.

  • (2) A member institution shall not make a representation with respect to any of the matters referred to in paragraphs 2(a) to (c) if its deposit insurance has been terminated or cancelled.

  • SOR/99-385, s. 2;
  • SOR/2006-334, s. 3.

Membership Representation

 A member institution may make representations with respect to anything contained in the brochure referred to in section 6.

  • SOR/2006-334, s. 4.
  •  (1) A member institution may, in its advertising, make any of the following representations, or representations in substantially the same words as any of the following representations, with respect to its status as a member institution:

    • (a) “Member of the Canada Deposit Insurance Corporation” (or “A Canada Deposit Insurance Corporation member”);

    • (b) “Member of CDIC” (or “A CDIC member”);

    • (c) “(name of the member institution) is a member of the Canada Deposit Insurance Corporation”; or

    • (d) “(name of the member institution) is a member of CDIC”.

  • (2) The representations referred to in subsection (1) may appear

    • (a) anywhere in advertising that deals exclusively with

      • (i) the member institution, without mentioning any deposit or other financial product, or

      • (ii) deposits insured by the Corporation; and

    • (b) immediately following, or in close proximity to, the name of the member institution in advertising that

      • (i) deals exclusively with deposits insured by the Corporation and refers to both the member institution and a person other than a member institution, using their name or a brand name or other identifier, or

      • (ii) does not deal exclusively with deposits insured by the Corporation, if the statement set out in subsection 9.1(1) appears in close proximity to the representations respecting the deposits that are not insured by the Corporation.

  • SOR/2006-334, s. 4.
  •  (1) A member institution shall display a membership sign provided by the Corporation prominently at each entrance to each of its places of business in such a manner that the sign is clearly visible during business hours.

  • (2) The membership sign, representing a stylized Canadian flag, must contain, at a minimum, the name of the Corporation, contact information for the Corporation and the name of the member institution or member institutions doing business at the location where the sign is to be displayed.

  • (2.1) A member institution may display a membership sign at any of its points of service.

  • (3) Where a member institution shares a place of business with a person other than a member institution, the member institution shall ensure that its representations and the location or manner in which its membership sign is displayed do not give the impression that the other person is also a member institution.

  • (4) When a member institution vacates a place of business or point of service, it shall remove all membership signs from the vacated premises.

  • SOR/2006-334, s. 5.

Representations Concerning Deposits and Deposit Insurance

 The Corporation shall supply to each member institution a copy of a brochure that includes the following:

  • (a) general information about the Corporation;

  • (b) contact information for the Corporation;

  • (c) the Corporation’s logo or other identifiers;

  • (d) information as to what constitutes a deposit that is insured by the Corporation;

  • (e) information as to what constitutes a deposit that is not insured by the Corporation;

  • (f) the maximum amount of deposit insurance coverage provided by the Corporation; and

  • (g) information as to what a depositor needs to know when the Corporation is obliged to make an insurance payment.

  • SOR/2006-334, s. 6.

 A member institution shall display the brochure prominently at each of its places of business and points of service and shall make copies of the brochure available to depositors or any other persons.

  • SOR/99-385, s. 3;
  • SOR/2006-334, s. 6.
  •  (1) Subject to subsection (3), a member institution that has its own web site or shares a web site with another member institution shall display deposit insurance information, consisting of at least the membership sign referred to in subsection 5(2) and the brochure referred to in section 6, provided by the Corporation in electronic form in both instances, on that web site, in at least one location

    • (a) on the home page;

    • (b) where there are representations respecting deposits that are insured by the Corporation; or

    • (c) on another web page, to which a hyperlink is provided at a location referred to in paragraph (a) or (b) that describes that page as the location where information about deposit insurance is available.

  • (2) Subject to subsection (3), a member institution that shares a web site with a person other than a member institution shall display deposit insurance information, consisting of at least the membership sign referred to in subsection 5(2) and the brochure referred to in section 6, provided by the Corporation in electronic form in both instances, on that web site, in at least one location

    • (a) where there are representations respecting deposits that are insured by the Corporation; or

    • (b) on another web page, to which a hyperlink is provided at the location referred to in paragraph (a) that describes that page as the location where information about deposit insurance is available.

  • (3) When the membership sign is displayed by a member institution in accordance with subsection (1) or (2), changes may be made to its overall sizing for the purpose of the electronic display but only if the proportions of the sign, as provided by the Corporation, are maintained.

  • SOR/2006-334, s. 7.
  •  (1) A federal credit union shall prepare a statement of transitional coverage that contains the following information, the accuracy of which has been verified by the Corporation:

    • (a) the purpose of the statement;

    • (b) a description of the deposit insurance coverage provided by the Corporation that applies to the pre-existing deposits of the federal credit union during the transition period;

    • (c) the day on which the deposit insurance coverage referred to in paragraph (b) expires; and

    • (d) a description of the deposit insurance coverage provided by the Corporation that will apply to the deposits of the federal credit union after the transition period expires.

  • (2) The federal credit union shall, beginning on the day on which it becomes a member institution and ending on the day on which the transition period expires,

    • (a) make the statement of transitional coverage available by way of a hyperlink on every page of its website that references deposit products; and

    • (b) make a copy of the statement of transitional coverage available at each of its branches and offices to depositors.

  • (3) The federal credit union shall, for a period of six months after the day on which it becomes a member institution, prominently display, at each branch and office where customers are served, a sign that refers customers to the statement of transitional coverage and indicates how they can obtain a copy of that statement.

  • (4) Subject to subsection (5), the federal credit union shall, not earlier than 12 weeks but not later than four weeks before the end of the transition period, provide to a depositor in respect of any pre-existing deposit that exceeds $100,000 and is to be repaid on a fixed day, a copy of the statement of transitional coverage or an indication of how they can obtain a copy of that statement.

  • (5) A federal credit union that has, under subsection (4), provided to a depositor a copy of the statement of transitional coverage in respect of a pre-existing deposit described in that subsection, or given to a depositor an indication of how that copy can be obtained, is not required to provide to the same depositor in respect of any other such pre-existing deposit a copy of the statement or an indication of how the copy can be obtained.

  • SOR/2016-33, s. 1.
  •  (1) A member institution shall prepare and maintain an up-to-date list of each type of instrument evidencing that the member institution has received or is holding money from or on behalf of a person

    • (a) that constitutes a deposit that is insured by the Corporation;

    • (b) that is or is to be set out in the member institution’s Return of Insured Deposits; and

    • (c) in respect of which the Corporation collects a premium in accordance with section 21 of the Act.

  • (2) The list shall be

    • (a) in printed form; or

    • (b) entered or recorded by any system of mechanical or electronic data processing or any other information storage device that is capable of reproducing any required information in intelligible written form within a reasonable time.

  • (3) A member institution shall provide a copy of the list to the Corporation with its Return of Insured Deposits.

  • SOR/99-385, s. 4;
  • SOR/2006-334, s. 8.
  •  (1) A member institution shall not issue an instrument, evidencing that the member institution has received or is holding money that does not constitute a deposit that is insured by the Corporation and in respect of which the Corporation does not collect a premium in accordance with section 21 of the Act, to any person in writing or by electronic or other means, unless the instrument bears a warning statement on its face in substantially the same words as one of the following statements:

    • (a) “Not insured by CDIC”;

    • (b) “Not insured by the Canada Deposit Insurance Corporation”; or

    • (c) “The deposit evidenced by this instrument does not constitute a deposit that is insured under the Canada Deposit Insurance Corporation Act.”

  • (2) A member institution shall not issue an instrument, that, in addition to the facts referred to in subsection (1), also evidences that the member institution has received or is holding money that constitutes a deposit that is insured by the Corporation and in respect of which the Corporation collects a premium in accordance with section 21 of the Act, to any person in writing or by electronic or other means, unless the instrument bears a warning statement on its face in substantially the same words as one of the following statements in the location specified, if any:

    • (a) “Only deposits held in Canadian currency, having a term of five years or less and payable in Canada are insurable under the Canada Deposit Insurance Corporation Act.”;

    • (b) “The following deposits evidenced by this instrument do not constitute deposits that are insured under the Canada Deposit Insurance Corporation Act:” before the list of deposit products that are not insured by the Corporation;

    • (c) “Not insured by CDIC” beside the reference to each deposit that is not insured by the Corporation;

    • (d) “Not insured by the Canada Deposit Insurance Corporation” beside the reference to each deposit that is not insured by the Corporation; or

    • (e) “Not insured by CDIC” in a footnote the reference mark for which is located beside the reference to each deposit that is not insured by the Corporation.

  • (3) Where a member institution enters into a transaction with a person by telecommunications facilities, or by electronic or other means, with respect to an instrument, the member institution shall

    • (a) in the case of an oral communication,

      • (i) make an oral representation that is substantially the same as the statement set out in subsection (2), and

      • (ii) issue to the person in writing, by telecommunications facilities or by electronic or other means, a notice that includes the statement set out in subsection (2); or

    • (b) in the case of a communication in writing, issue to the person in writing, by telecommunications facilities or by electronic or other means, a notice that includes the statement set out in subsection (2).

  • SOR/99-385, s. 5;
  • SOR/99-465, s. 1(F);
  • SOR/2006-334, s. 9.
  •  (1) A member institution may affix to any document relating to a deposit that is not insured by the Corporation a statement in substantially the same words as the following:

    “Only deposits held in Canadian currency, having a term of five years or less and payable in Canada are insurable under the Canada Deposit Insurance Corporation Act.”

  • (2) A member institution may affix any of the statements set out in paragraphs 9(1)(a) to (c) to any document evidencing that the member institution has received or is holding money that does not constitute a deposit that is insured by the Corporation.

  • SOR/99-385, s. 6;
  • SOR/99-465, s. 1(F);
  • SOR/2006-334, s. 10.
  •  (1) The following definitions apply in this section.

    advertisement

    advertisement means a sales communication in written form that is published in or designed for use on a public medium, other than radio or television. (texte publicitaire)

    sales communication

    sales communication means a communication, relating to a mutual fund, that is made to any person in order to induce them to purchase securities of the mutual fund and that is not contained in any of the following documents of the mutual fund:

    • (a) a preliminary prospectus or a pro forma prospectus;

    • (b) a simplified prospectus or a simplified pro forma prospectus;

    • (c) an annual information form or a preliminary or pro forma annual information form;

    • (d) any financial statements, including the notes to those financial statements and the auditor’s report on those financial statements;

    • (e) a trade confirmation;

    • (f) a statement of account; or

    • (g) an annual or interim management report of fund performance. (communication à des fins de vente)

    subsidiary

    subsidiary has the same meaning as in section 2 of the Bank Act. (filiale)

  • (2) A member institution shall include in its advertisements about money market mutual funds, or have included in the advertisements of any of its subsidiaries or affiliates about money market mutual funds, a warning statement in substantially the same words as the following:

    “Mutual fund securities are not covered by the Canada Deposit Insurance Corporation.”

  • SOR/2006-334, s. 10.

Coming into Force

  • Footnote * (1) Subject to subsection (2), this By-law comes into force on the day on which section 45 of An Act to amend, enact and repeal certain laws relating to financial institutions, chapter 6 of the Statutes of Canada, 1996, comes into force.

  • (2) Sections 7 and 8 come into force on March 1, 1998.

SCHEDULE I

[Repealed, SOR/2006-334, s. 11]

SCHEDULE II

[Repealed, SOR/2006-334, s. 11]
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