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Canada Deposit Insurance Corporation Act (R.S.C., 1985, c. C-3)

Act current to 2019-12-03 and last amended on 2019-05-10. Previous Versions

AMENDMENTS NOT IN FORCE

  • — 2014, c. 39, s. 268

  • — 2018, c. 12, s. 202

    • 202 Section 2 of the Canada Deposit Insurance Corporation Act is amended by adding the following in alphabetical order:

      nominee broker

      nominee broker means a person who is a party to an agreement or arrangement with a member institution in order to make deposits as a nominee on behalf of another person. (courtier-fiduciaire)

      nominee broker deposit

      nominee broker deposit means a deposit made at a member institution by a nominee broker acting as a nominee on behalf of another person. (dépôt de courtier-fiduciaire)

      professional trustee

      professional trustee means any of the following who is not a nominee broker:

      • (a) the public trustee of a province or a similar public official whose duties involve holding moneys in trust for others;

      • (b) a federal, provincial or municipal government, or a department or agency of such a government;

      • (c) a lawyer or partnership of lawyers, a law corporation, or a notary or partnership of notaries in the province of Quebec, when they act in that capacity as a trustee of moneys for others;

      • (d) a person who is acting as a trustee of moneys for others in the course of business and is required by or under a statute to hold the deposit in trust;

      • (e) a person who is acting as a trustee of moneys for others in the course of business and is subject to the rules of a securities commission, stock exchange or other regulatory or self-regulating organization that audits compliance with those rules; or

      • (f) a regulated federal or provincial trust company acting in the capacity of a depositor. (fiduciaire professionnel)

  • — 2018, c. 12, s. 203

    • 203 Paragraph 12(a) of the Act is replaced by the following:

      • (a) a deposit that is not payable in Canada;

  • — 2018, c. 12, s. 204

      • 204 (1) Section 14 of the Act is amended by adding the following after subsection (1):

        • Inability to form opinion

          (1.01) The Corporation shall not make any money available under subsection (1) to a nominee broker or a professional trustee in relation to a trust deposit if information that the Corporation has requested under paragraph 7(1)(b) of the schedule or paragraph 11(b) of the schedule, as the case may be, has not been provided in relation to that deposit.

      • (2) Section 14 of the Act is amended by adding the following after subsection (2.91):

        • Foreign currency exchange

          (2.92) For the purposes of calculating the payment to be made by the Corporation in respect of any deposit payable in a foreign currency that is insured by deposit insurance, the amount of the deposit must be determined in Canadian currency in accordance with the Bank of Canada’s published exchange rate on the applicable date referred to in subsection (2.9) or, if there is no such published rate, the last exchange rate published by the member institution before that applicable date.

  • — 2018, c. 12, s. 205

    • 205 The Act is amended by adding the following after section 25.3:

      • Interpretation

        25.4 For the purposes of sections 21 to 25.3, the deposits that are considered to be insured by the Corporation include the total amount of all deposits held in accounts that are identified as professional trustee accounts in accordance with section 9 of the schedule.

  • — 2018, c. 12, s. 206

    • 206 Subsection 26.01(2) of the Act is replaced by the following:

      • Exception

        (2) For the purposes of subparagraph 26.03(1)(c)(iii) and paragraph 26.03(1)(d), deposit has the meaning that would be given to it by the schedule, for the purposes of deposit insurance, but does not include deposits not payable in Canada.

  • — 2018, c. 12, s. 207

    • 207 The Act is amended by adding the following after subsection 45.2(2):

      • Information respecting nominee brokers

        (3) The Corporation may, if it is satisfied that the information will be treated as confidential by the recipient, disclose information that is obtained by it — or is produced by or for it — respecting the non-compliance of a nominee broker with section 7 of the schedule to

        • (a) any government agency or body that regulates or supervises nominee brokers, for purposes related to that regulation or supervision; or

        • (b) any other agency or body that regulates or supervises nominee brokers, for purposes related to that regulation or supervision.

      • Making information public

        (4) Despite subsection (1), for the purpose of protecting the interests and rights of beneficiaries of nominee broker deposits, the Corporation may make information referred to in subsection (3) available to the public in a manner that it considers advisable.

  • — 2018, c. 12, s. 208

    • 208 The schedule to the Act is amended by replacing the section references after the heading “SCHEDULE” with the following:

      (Section 2, subsections 11(2.1), 12.1(2) and (3) and 14(1.01), sections 25.4 and 26.01 and subsection 45.2(3))
  • — 2018, c. 12, s. 209

    • 209 The schedule to the Act is amended by adding the following before section 1:

      Interpretation

  • — 2018, c. 12, s. 210

    • 210 Section 1 of the schedule to the Act is amended by adding the following in alphabetical order:

      registered education savings plan

      registered education savings plan has the same meaning as in subsection 146.1(1) of the Income Tax Act. (régime enregistré d’épargne-études)

      registered disability savings plan

      registered disability savings plan has the same meaning as in subsection 146.4(1) of the Income Tax Act. (régime enregistré d’épargne-invalidité)

  • — 2018, c. 12, s. 211

      • 211 (1) Paragraph 2(1)(a) of the schedule to the Act is replaced with the following:

        • (a) has given or is obligated to give credit to that person’s account or has issued or is obligated to issue a receipt, certificate, debenture (other than a debenture issued by a bank to which the Bank Act applies), transferable instrument, draft, certified draft or cheque, prepaid letter of credit, money order or other instrument in respect of which the institution is primarily liable, and

      • (2) Section 2 of the schedule to the Act is amended by adding the following after subsection (1.1):

        • Included moneys

          (1.2) For greater certainty, moneys are considered to be a deposit or part of a deposit if they are paid in respect of a deposit that is held in a registered education savings plan or registered disability savings plan under or because of

          • (a) the Canada Education Savings Act or a designated provincial program as defined in subsection 146.1(1) of the Income Tax Act;

          • (b) any other program that has a similar purpose to a designated provincial program referred to in paragraph (a) and that is funded, directly or indirectly, by a province;

          • (c) the Canada Disability Savings Act or a designated provincial program as defined in subsection 146.4(1) of the Income Tax Act; or

          • (d) any other program that has a similar purpose to a designated provincial program referred to in paragraph (c) and that is funded, directly or indirectly, by a province.

      • (3) Subsections 2(2) to (2.2) of the schedule to the Act are replaced with the following:

        • Excluded moneys

          (2) Moneys held by the institution that were received by it when it was not a federal institution, a provincial institution or a local cooperative credit society are excluded from the moneys referred to in subsection (1).

      • (4) The schedule to the Act is amended by replacing the portion of subsection 2(5) before paragraph (a) by the following:

        • Moneys received on or after April 1, 1977

          (5) Despite subsection (1), for the purposes of deposit insurance with the Corporation, if moneys are or were received by a member institution on or after April 1, 1977 for which the institution has issued or is obligated to issue an instrument evidencing a deposit, other than a draft, certified draft or cheque, prepaid letter of credit or money order,

      • (5) The schedule to the Act is amended by replacing subsection 2(6) with the following:

        • Moneys received on or after January 1, 1977

          (6) Despite subsection (1), moneys received by a member institution on or after January 1, 1977, for which the institution has issued or is obligated to issue an instrument of indebtedness, other than a draft, certified draft or cheque, prepaid letter of credit or money order, do not constitute a deposit where the instrument is payable outside Canada.

  • — 2018, c. 12, s. 212

    • 212 Section 3 of the schedule to the Act is replaced by the following:

      • Not part of deposit

        3 If a member institution is obligated to repay to a person any moneys that are received or held by the institution and the date on which the person acquires their interest or right in the moneys is a date subsequent to the date on which the policy of deposit insurance of the member institution is terminated or cancelled, the amount of the moneys is considered not to constitute part of a deposit for the purposes of deposit insurance with the Corporation.

      Co-ownership of Deposits

      • Co-owned deposits
        • 4 (1) If a member institution is obligated to repay moneys to a depositor who is acting as a co-owner with another person and the co-ownership is disclosed on the records of the member institution, in accordance with the by-laws, the deposit of the depositor is, for the purposes of deposit insurance with the Corporation, considered to be a deposit separate from any deposit of the depositor acting in their own right, in a trust capacity or in another co-ownership capacity with the member institution.

        • Co-ownership

          (2) For greater certainty, if two or more persons are co-owners of two or more deposits, the aggregate of those deposits shall be insured to a maximum of one hundred thousand dollars.

      Deferred or Other Special Income Arrangements

      • Registered retirement savings plans
        • 5 (1) Despite subsection 6(2), for the purposes of deposit insurance with the Corporation, if moneys that constitute a deposit or part of a deposit are received by a member institution from a depositor in accordance with a registered retirement savings plan, as defined in subsection 146(1) of the Income Tax Act, and the plan is for the benefit of an individual, then the aggregate of those moneys and any other moneys received from that depositor in accordance with any other registered retirement savings plan that constitute a deposit or part of a deposit for the benefit of that individual is considered to be a single deposit separate from any other deposit for the benefit of that individual.

        • Registered retirement income funds

          (2) Despite subsection 6(2), for the purposes of deposit insurance with the Corporation, if moneys that constitute a deposit or part of a deposit are received by a member institution from a depositor under a registered retirement income fund, as defined in subsection 146.3(1) of the Income Tax Act, and the plan is for the benefit of an individual, then the aggregate of those moneys and any other moneys that constitute a deposit or part of a deposit received from that depositor under any other registered retirement income fund that is for the benefit of that individual, is considered to be a single deposit separate from any other deposit for the benefit of that individual.

        • Tax-free savings accounts

          (3) Despite subsection 6(2), for the purposes of deposit insurance with the Corporation, if moneys that constitute a deposit or part of a deposit are received by a member institution from a depositor under a tax-free savings account, within the meaning assigned by section 146.2 of the Income Tax Act, and the account is for the benefit of an individual, then the aggregate of those moneys and any other moneys that constitute a deposit or part of a deposit received from that depositor under any other tax-free savings account that is for the benefit of that individual is considered to be a single deposit separate from any other deposit for the benefit of that individual.

        • Registered education savings plans

          (4) Despite subsection 6(2), for the purposes of deposit insurance with the Corporation, if moneys that constitute a deposit or part of a deposit are received by a member institution from a depositor under a registered education savings plan that is for the benefit of an individual, then the aggregate of those moneys and any other moneys that constitute a deposit received from that depositor under any other registered education savings plan that is for the benefit of that individual is considered to be a single deposit separate from any other deposit for the benefit of that individual.

        • Registered disability savings plans

          (5) Despite subsection 6(2), for the purposes of deposit insurance with the Corporation, if moneys that constitute a deposit are received by a member institution from a depositor under a registered disability savings plan that is for the benefit of an individual, then the aggregate of those moneys and any other moneys that constitute a deposit or part of a deposit received from the same depositor under any other registered disability savings plan that is for the benefit of that individual is considered to be a single deposit separate from any other deposit for the benefit of that individual.

        • Government moneys

          (6) For the purposes of subsections (4) and (5) moneys received by a member institution from a depositor in accordance with a registered education savings plan or a registered disability savings plan are considered to include moneys received from the government of Canada or the government of a province under that plan.

      Trust Deposits

      General

      • Trust deposits
        • 6 (1) If a member institution is obligated to repay moneys to a depositor who is acting as a trustee for another person and the trusteeship is disclosed on the records of the member institution, in accordance with the by-laws, the deposit of the depositor is, for the purposes of deposit insurance with the Corporation, considered to be a deposit separate from any deposit of the depositor acting in their own right, in a co-ownership capacity or acting in a trust capacity for another person with the member institution.

        • Separate trust deposit

          (2) If a member institution is obligated to repay moneys to a depositor who is acting as trustee for a beneficiary and the trusteeship is disclosed on the records of the member institution, in accordance with the by-laws, the interest or right of the beneficiary in the deposit is, for the purposes of deposit insurance with the Corporation, considered to be a deposit separate from any deposit of the beneficiary made with the member institution in their own right for their own use and separate from any interest or right of the beneficiary in respect of any other trust deposit made by another depositor of which the beneficiary is a beneficiary.

        • Deposit of beneficiary

          (3) Subject to section 10, if a member institution is obligated to repay moneys to a depositor who is acting as trustee for two or more beneficiaries and the interest or right of a beneficiary in the deposit is disclosed on the records of the member institution, in accordance with the by-laws, the interest or right of that beneficiary in the deposit is, for the purposes of deposit insurance with the Corporation, considered to be a separate deposit.

        • Multiple deposits

          (4) For greater certainty, if a member institution is obligated to repay moneys to a depositor who is acting as trustee for two or more trusteeships under which the same beneficiary is a beneficiary, the aggregate of the interest or right of that beneficiary in those deposits shall be insured to a maximum of one hundred thousand dollars.

        • Notice to trustees

          (5) The Corporation may, in accordance with the by-laws, require a member institution who is obligated to repay moneys to a depositor who is acting as a trustee for another person to provide the trustee with the information specified by the Corporation.

      Nominee Broker Deposits

      • Additional conditions
        • 7 (1) The following conditions apply to nominee broker deposits in addition to those set out in section 6:

          • (a) at the time the deposit is made and each time a change is made to the deposit, the nominee broker must provide the following information to the member institution for it to disclose on its records

            • (i) the fact that the deposit is made by a nominee broker,

            • (ii) the unique alphanumeric code for each beneficiary of the deposit, assigned in accordance with the by-laws,

            • (iii) the amount or percentage of the interest or right of the beneficiary associated with that code, and

            • (iv) any other information specified in the by-laws; and

          • (b) the nominee broker must provide, in accordance with the by-laws, the following to the Corporation, within three business days after the day on which a request is made by the Corporation:

            • (i) each unique alphanumeric code provided under subparagraph (a)(ii),

            • (ii) the current name and address of the beneficiary associated with that code, and

            • (iii) any other information specified in the by-laws respecting the deposit.

        • Co-ownership

          (2) If two or more persons are co-owners of a deposit, they are, for the purposes of assigning a unique alphanumeric code, considered to be a single beneficiary, separate from any of the persons as a beneficiary — in their own right, in a trust capacity or in another co-ownership capacity — of a deposit made by the same nominee broker with the same member institution.

      • Member institution requirements — agreements and arrangements
        • 8 (1) If a member institution enters into an agreement or arrangement respecting nominee broker deposits, the member institution must ensure that the agreement or arrangement includes provisions that require the nominee broker

          • (a) to provide information to the Corporation in accordance with paragraph 7(1)(b);

          • (b) to make an initial attestation to the Corporation and updated attestations in accordance with the bylaws that state whether the nominee broker is, or is not, capable of fullfilling the obligations set out in paragraph 7(1)(b); and

          • (c) to provide and update contact information in accordance with the by-laws to the member institution.

        • Updates

          (2) The member institution must ask the depositor to make an updated attestation under paragraph (1)(b) and to provide updated contact information under paragraph (1)(c) each April.

        • Notice

          (3) If a member institution enters into an agreement or arrangement respecting nominee broker deposits, the member institution must notify the Corporation in accordance with the by-laws.

        • Notice — end of agreement or arrangement

          (4) If a member institution that has entered into an agreement or arrangement respecting nominee broker deposits is no longer a party to that agreement or arrangement, the member institution must notify the Corporation in accordance with the by-laws.

        • Failure to comply with paragraph 7(1)(a)

          (5) If the member institution receives moneys from or holds moneys in a nominee broker deposit and the nominee broker fails to comply with paragraph 7(1)(a), the member institution must, as soon as possible after the failure, provide the nominee broker with the information specified in the by-laws.

      Professional Trustee Accounts

      • Professional trustee account

        9 A member institution must identify an account as a professional trustee account if the depositor

        • (a) makes an attestation, in accordance with the by-laws, stating that they are a professional trustee;

        • (b) provides contact information in accordance with the by-laws; and

        • (c) requests that the account to be identified as a professional trustee account.

      • Deposit of beneficiary

        10 If a deposit referred to in subsection 6(3) is held in an account identified as a professional trustee account, the interest or right of each beneficiary in the deposit does not have to be disclosed on the records of the member institution. However, the interest or right of each beneficiary in the deposit is not, for the purposes of deposit insurance with the Corporation, considered to be a separate deposit unless the depositor meets the conditions set out in section 11.

      • Additional conditions

        11 In respect of a deposit held in an account identified as a professional trustee account, the following conditions apply in addition to those set out in subsections 6(1) and (2):

        • (a) the depositor must, in accordance with the by-laws, maintain a record that sets out the current name and address of each beneficiary of a deposit in the account and the amount or percentage of the interest or right of each beneficiary;

        • (b) the depositor must provide, in accordance with the by-laws, information respecting deposits in the account to the Corporation if a request is made by the Corporation; and

        • (c) each April, the depositor must provide the member institution with

          • (i) an attestation, in accordance with the by-laws, stating that they continue to be a professional trustee,

          • (ii) confirmation that the account is to continue to be identified as a professional trustee account, and

          • (iii) updated contact information in accordance with the by-laws.

      • Updates
        • 12 (1) A member institution that has identified an account as a professional trustee account must ask the depositor to carry out the actions referred to in paragraph 11(c) each March.

        • Change of status

          (2) A depositor who has requested that the account to be identified as a professional trustee account and who is no longer a professional trustee, must notify the member institution that they are no longer a professional trustee and request that the designation be removed.

        • Designation removed

          (3) A member institution must remove the designation of an account identified as a professional trustee account if

          • (a) the depositor requests that the designation be removed; or

          • (b) the depositor fails to carry out the actions referred to in paragraph 11(c) by April 30.

      • Information privileged

        13 For greater certainty, the provision by a depositor to the Corporation of information respecting deposits held in an account identified as a professional trustee account that is subject to solicitor-client privilege or the professional secrecy of advocates and notaries does not constitute a waiver of the privilege or secrecy.

      By-laws

      • By-laws

        14 For the purposes of the provisions of this schedule, the Board may make by-laws

        • (a) respecting information that is to be disclosed on the records of a member institution in respect of a co-ownership interest, a trusteeship or the interest or right of a beneficiary in a deposit;

        • (b) respecting the assignment of unique alphanumeric codes for beneficiaries of nominee broker deposits;

        • (c) specifying information that is to be disclosed on the records of a member institution in respect of a nominee broker deposit;

        • (d) specifying the information a nominee broker is to provide, and the form and manner in which it is to be provided, under paragraph 7(1)(b);

        • (e) respecting attestations by nominee brokers and professional trustees;

        • (f) respecting contact information referred to in paragraph 8(1)(c) and 9(b) and subparagraph 11(c)(iii);

        • (g) respecting notification requirements for agreements or arrangements respecting nominee broker deposits;

        • (h) specifying information for the purposes of subsection 8(4);

        • (i) respecting records to be maintained under paragraph 11(a);

        • (j) specifying the information a professional trustee is to provide, and the form and manner in which it is to be provided, under paragraph 11(b); and

        • (k) respecting the provision of information to trustees under subsection 6(5).

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