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 9.1.

  • (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;
  • SOR/2017-215, s. 2.

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) [Repealed, SOR/2017-215, s. 4]

  • (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;
  • SOR/2017-215, s. 4.

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 website or shares a website with another member institution shall display deposit insurance information, consisting of at least the membership sign referred to in section 5 and the brochure referred to in section 6, provided by the Corporation in electronic form in both instances, on that website, 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 website with a person other than a member institution shall display deposit insurance information, consisting of at least the membership sign referred to in section 5 and the brochure referred to in section 6, provided by the Corporation in electronic form in both instances, on that website, 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;
  • SOR/2017-215, s. 6.
  •  (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.

 [Repealed, SOR/2017-215, 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]

AMENDMENTS NOT IN FORCE

  • — SOR/2017-215, s. 1

      • (1) The definition point of service in section 1 of the Canada Deposit Insurance Corporation Deposit Insurance Information By-lawFootnote 1 is repealed.

      • (2) The definition place of business in section 1 of the By-law is replaced by the following:

        place of business

        place of business means a physical location in Canada where a member institution carries on business and where a person may make a deposit or commence a transaction to open a deposit account with the assistance of a representative of the member institution, but does not include an automated teller machine. (lieu d’affaires)

      • (3) Section 1 of the By-law is amended by adding the following in alphabetical order:

        electronic business site

        electronic business site means a website or other electronic site that is used by a member institution to carry on business and at which a person may make a deposit or commence a transaction to open a deposit account with or without the assistance of a representative of the member institution, and, for greater certainty, includes an automated teller machine. (site d’affaires électronique)

  • — SOR/2017-215, s. 3

    • 3 Sections 3 to 5 of the By-law are replaced by the following:

        • (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 4 to 11.

        • (2) A member institution whose policy of deposit insurance is terminated or cancelled shall immediately remove from each of its places of business and each of its electronic business sites all references to its status as a member institution and to the deposit insurance provided by the Corporation, including displays of the membership sign, brochure and badge.

        • (3) When a member institution ceases to use a location as a place of business, it shall remove from the location all references to its status as a member institution and to the deposit insurance provided by the Corporation, including displays of the membership sign, brochure and badge.

        • (4) When a member institution is required to display or elects to display a membership sign or badge in digital form, changes may be made to its overall size, but only if the proportions of the sign or badge, as supplied by the Corporation, are maintained and the content is clearly visible and legible.

      Representations About Membership

      Representations in Advertisements

        • (1) If a member institution makes a representation about its status as a member institution in its advertising, other than by displaying the membership sign or badge, it shall use one of the following representations, or a representation in substantially the same words as any of the following representations:

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

          • (b) “Member of the 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 the CDIC”.

        • (2) Subject to subsection (3), the representations may appear anywhere in the advertising of a member institution, if the location at which and the manner in which they are displayed do not give the impression that

          • (a) a person is a member institution when they are not a member institution; or

          • (b) a deposit is insured by the Corporation when it is not eligible to be insured by the Corporation.

        • (3) If the advertising does not deal exclusively with deposits that are eligible to be insured by the Corporation, the member institution shall not make any of the representations referred to in subsection (1) unless the statement set out in paragraph 9(2)(a) appears in close proximity to the representations respecting the deposits that are not eligible to be insured by the Corporation.

      Display of Membership Sign

        • (1) A member institution shall prominently display a membership sign supplied by the Corporation

          • (a) in physical form, at each entrance to each of its places of business so that the membership sign is clearly visible during business hours; and

          • (b) in physical or digital form, within each of its places of business so that the membership sign is clearly visible during business hours from the main areas of each of those places of business.

        • (2) A member institution shall display the membership sign in digital form on the home page of its website, either directly or by way of a single hyperlink that links to a page where information about its status as a member institution is available.

        • (3) A member institution shall ensure that the location at which and the manner in which the membership sign is displayed does not give the impression that

          • (a) a person is a member institution when they are not a member institution; or

          • (b) a deposit is insured by the Corporation when it is not eligible to be insured by the Corporation.

  • — SOR/2017-215, s. 5

    • 5 Sections 6 and 7 of the By-law are replaced by the following:

      Display and Provision of Brochure

        • (1) A member institution shall prominently display a brochure in physical form, supplied by the Corporation for that purpose, at each of its places of business and shall also make copies of the brochure available there to depositors and all other persons.

        • (2) A member institution shall, as part of the account opening process for a deposit that is eligible to be insured by the Corporation, provide a depositor

          • (a) if all account opening documents are provided only in digital form, with the digital form of a brochure supplied by the Corporation;

          • (b) if all account opening documents are provided only in physical form, with a printed version of the digital form of the brochure; or

          • (c) in any other case, with either the digital form of the brochure or a printed version of that digital form.

        • (3) The physical and digital form of the brochures shall contain 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 eligible to be insured by the Corporation;

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

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

        • (4) For greater certainty, a member institution, or any other person, may make representations about the subject matter of the brochure if the representation is not false, misleading or deceptive.

        • (5) A member institution shall ensure that the location at which and the way in which the brochure is displayed does not give the impression that

          • (a) a person is a member institution when they are not a member institution; or

          • (b) a deposit is insured by the Corporation when it is not eligible to be insured by the Corporation.

      Display of Badge

        • (1) Subject to subsections (2), (3) and (5), a member institution shall prominently display the digital form of a badge supplied by the Corporation at each of the following locations on its electronic business sites, other than automated teller machines:

          • (a) the home page;

          • (b) the landing page for each deposit product eligible to be insured by the Corporation;

          • (c) the page where a depositor makes transactions after logging on; and

          • (d) each page where the membership sign is displayed.

        • (2) A member institution shall prominently display the badge supplied by the Corporation in either physical or digital form at each of its automated teller machines at which a person may make deposits.

        • (3) A member institution that shares the home page for an electronic business site with a person other than a member institution shall not display the badge on the home page.

        • (4) The badge, whether in physical or digital form, shall contain, at a minimum, the Corporation’s logo or other identifiers. The badge in digital form shall also contain a hyperlink to the contents of the brochure referred to in subsection 6(3), unless the badge is being displayed on an automated teller machine.

        • (5) A member institution shall ensure that the location at which and the way in which the badge is displayed does not give the impression that

          • (a) a person is a member institution when they are not a member institution; or

          • (b) a deposit is insured by the Corporation when it is not eligible to be insured by the Corporation.

  • — SOR/2017-215, s. 6(3)

      • (3) Section 7.1 of the By-law is repealed.

  • — SOR/2017-215, s. 7

    • 7 Section 7.2 of the By-law is repealed.

  • — SOR/2017-215, s. 8

      • (1) Paragraph 8(1)(a) of the By-law is replaced by the following:

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

      • (2) Section 8 of the By-law is renumbered as section 11 and that section is repositioned accordingly.

  • — SOR/2017-215, s. 9

    • 9 Sections 9 to 9.1 of the By-law are replaced by the following:

      Federal Credit Unions: Statement of Transitional Coverage

        • (1) A federal credit union shall prepare a statement of transitional coverage that contains the following information 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) A 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 refers to deposit products; and

          • (b) make a copy of the statement available to depositors at each of its places of business.

        • (3) A federal credit union shall, for a period of 180 days after the day on which it becomes a member institution, prominently display, at each of its places of business, a sign that refers depositors and all other persons to the statement of transitional coverage and indicates how they can obtain a copy of that statement.

        • (4) Subject to subsection (5), a federal credit union shall, not earlier than 12 weeks but not later than 4 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 provided to a depositor a copy of the statement of transitional coverage in respect of a pre-existing deposit, 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 pre-existing deposit a copy of the statement or an indication of how the copy can be obtained.

      Warning Statements for Ineligible Deposits

        • (1) Subject to subsection (2), if a member institution issues an instrument to a person evidencing that the member institution has received or is holding money that constitutes a deposit that is not eligible to be insured by the Corporation, the member institution shall include on the face of the instrument a warning statement in substantially the same words as one of the following statements:

          • (a) “Not insured by the 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) If a member institution issues an instrument to a person evidencing that the member institution has received or is holding money that constitutes both a deposit that is eligible to be insured by the Corporation and a deposit that is not eligible to be insured by the Corporation, the member institution shall include on the face of the instrument, in the location specified, if any, a warning statement in substantially the same words as one of the following statements:

          • (a) “Only deposits held in Canadian currency, having a term of five years or less and payable in Canada are eligible to be insured 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 deposits that are not eligible to be insured by the Corporation;

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

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

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

        • (3) If a member institution enters into a transaction with a person by means of telecommunications, 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 one of the statements set out in subsection (2), and

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

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

        • 9.1 (1) If a member institution elects to affix a warning statement to any document relating to a deposit that is not eligible to be insured by the Corporation, the warning shall be 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 eligible to be insured under the Canada Deposit Insurance Corporation Act.”

        • (2) If a member institution elects to affix a warning statement to any document evidencing that the member institution has received or is holding money that does not constitute a deposit that is eligible to be insured by the Corporation, the statement shall be in substantially the same words as one set out in one of paragraphs 9(1)(a) to (c).

  • — SOR/2017-215, s. 11

    • 11 Section 10 of the By-law and the heading before it are replaced by the following:

      Lists of Trade Names and Financial Products

      • 10 A member institution shall not, in the course of its deposit-taking activities relating to deposits eligible to be insured by the Corporation, use one of its trade names in its representations about who is a member institution, what constitutes a deposit or what constitutes a deposit that is insured by the Corporation, unless the member institution

        • (a) prepares and maintains an up-to-date list of those trade names;

        • (b) makes the list available on its website in the same location where the membership sign is displayed;

        • (c) provides the Corporation with a copy of the list not later than November 1, 2018 and, after that date, provides the Corporation with a copy of the list with its Return of Insured Deposits;

        • (d) provides the Corporation with not less than 15 days’ notice of any new trade name to be used in the course of its deposit-taking activities relating to deposits eligible to be insured by the Corporation and the date of the intended first public use of that trade name by the member institution; and

        • (e) permits the Corporation to make the contents of the list, and any updates to the list, available to the public.

  • — SOR/2017-215, s. 12

    • 12 The By-law is amended by adding the following after section 11:

      Statement Regarding Compliance

      • 12 A member institution shall state whether or not it is in compliance with this By-law and shall submit that statement with the Return of Insured Deposits.

Date modified: