Canada Deposit Insurance Corporation Co-owned and Trust Deposit Disclosure By-law (SOR/2019-312)

Interpretation

Marginal note:Definitions

• 1 (1) The following definitions apply in this By-law.

  Act

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

  determination date

  determination date means, in respect of a member institution,

  • (a) if a winding-up order is made in respect of the institution before the day on which the Corporation makes a payment in respect of the majority — in number or value — of the deposits held by the institution that are insured by deposit insurance, the day on which the petition or other originating process is filed in respect of the winding-up; or

  • (b) if a winding-up order is not made in respect of the institution before the day on which the Corporation makes a payment in respect of the majority — in number or value — of the deposits held by the institution that are insured by deposit insurance, the day on which any of the circumstances described in subsection 14(2.1) of the Act first occurs in respect of the institution. (date-repère)

  senior officer

  senior officer means, in respect of a nominee broker or professional trustee that is not an individual,

  • (a) its chief executive officer or a member of its board of directors, or an individual who performs functions similar to those normally performed by someone occupying one of those positions; or

  • (b) an officer who reports directly to a person referred to in paragraph (a) or to the board of directors. (cadre dirigeant)

  special income arrangement

  special income arrangement means

  • (a) a registered retirement savings plan referred to in subsection 5(1) of the schedule to the Act;

  • (b) a registered retirement income fund referred to in subsection 5(2) of the schedule to the Act;

  • (c) a tax-free savings account referred to in subsection 5(3) of the schedule to the Act;

  • (c.1) a Tax-Free First Home Savings Account referred to in subsection 5(3.1) of the schedule to the Act;

  • (d) a registered education savings plan referred to in subsection 5(4) of the schedule to the Act; or

  • (e) a registered disability savings plan referred to in subsection 5(5) of the schedule to the Act. (arrangement spécial)

• Marginal note:Types of special income arrangement

  (2) For the purposes of this By-law, each paragraph in the definition special income arrangement describes a type of special income arrangement.

Co-owned Deposits

Marginal note:Information

2 For the purpose of subsection 4(1) of the schedule to the Act, a co-ownership must be disclosed on the records of a member institution before the determination date by

• (a) indicating that the deposit is co-owned; and

• (b) setting out each co-owner’s name.

Trust Deposits

General

Marginal note:Records of member institution

• 3 (1) For the purpose of subsection 6(1) of the schedule to the Act, if the deposit is neither a nominee broker deposit nor a deposit held in an account identified as a professional trustee account, the trusteeship must be disclosed on the records of the member institution before the determination date by

  • (a) indicating that the deposit is held in trust; and

  • (b) setting out each trustee’s name and one trustee’s address.

• Marginal note:Interest or right of beneficiary

  (2) For the purpose of subsection 6(2) of the schedule to the Act, if the deposit is neither a nominee broker deposit nor a deposit held in an account identified as a professional trustee account, the trusteeship must be disclosed on the records of the member institution before the determination date by

  • (a) indicating that the deposit is held in trust;

  • (b) setting out each trustee’s name and one trustee’s address; and

  • (c) setting out the beneficiary’s name and address.

• Marginal note:Multiple beneficiaries

  (3) For the purpose of subsection 6(3) of the schedule to the Act, if the deposit is neither a nominee broker deposit nor a deposit held in an account identified as a professional trustee account, a beneficiary’s interest or right in the deposit must be disclosed on the records of the member institution before the determination date by

  • (a) indicating that the deposit is held in trust;

  • (b) setting out each trustee’s name and one trustee’s address;

  • (c) setting out the beneficiary’s name and address; and

  • (d) setting out the amount or percentage of the beneficiary’s interest or right in the deposit.

Marginal note:Special income arrangement

4 If a deposit is received under a special income arrangement from a depositor who is acting as a trustee for another person and it is neither a nominee broker deposit nor a deposit held in an account identified as a professional trustee account, the type of special income arrangement and the name and address of the individual for whose benefit the arrangement is established are to be disclosed on the records of the member institution before the determination date.

Marginal note:Information to depositor

• 5 (1) For the purpose of subsection 6(5) of the schedule to the Act, the information that the Corporation may require a member institution to provide to a depositor who indicates that they are acting as a trustee for another person includes

  • (a) the fact that the depositor is responsible for providing the member institution with, and updating, the information referred to in section 3 for disclosure on the member institution’s records;

  • (b) the manner in which the depositor may provide and update that information;

  • (c) the fact that failure to provide that information may result in the deposit not receiving full deposit insurance protection; and

  • (d) the fact that the Corporation will rely on the latest information disclosed on the member institution’s records, which could affect deposit insurance coverage.

• Marginal note:Time and manner

  (2) The information must be provided in writing at the time of opening an account for the depositor and during the month of March in each year.

• Marginal note:Exception

  (3) Subsection (1) does not apply in respect of a deposit

  • (a) for which the depositor is a nominee broker;

  • (b) that is held in an account identified as a professional trustee account; or

  • (c) for which the depositor is the member institution.

Nominee Broker Deposits

Marginal note:Information to member institution

• 6 (1) For the purpose of subparagraph 7(1)(a)(ii) of the schedule to the Act, alphanumeric codes must be assigned in accordance with the following rules:

  • (a) a nominee broker must not assign the same code to more than one beneficiary;

  • (b) a nominee broker must assign the same code in respect of all of a beneficiary’s deposits made by the nominee broker at the same member institution that are held under the same type of special income arrangement;

  • (c) a nominee broker must assign the same code in respect of all of a beneficiary’s deposits made by the nominee broker at the same member institution that are not held under a special income arrangement;

  • (d) a nominee broker may assign the same code in respect of the beneficiary’s deposits that are held under different types of special income arrangement or under no such arrangement.

• Marginal note:Other information

  (2) For the purpose of subparagraph 7(1)(a)(iv) of the schedule to the Act, the nominee broker must provide the following information to the member institution:

  • (a) the nominee broker’s legal name;

  • (b) the type of special income arrangement under which the deposit is held or an indication that the deposit is not held under any special income arrangement;

  • (c) if the deposit is held under a special income arrangement, the alphanumeric code, assigned in accordance with the following rules, for each individual for whose benefit the arrangement is established, along with an indication that the code is assigned for the purposes of this paragraph:

    • (i) a nominee broker must not assign the same code to more than one individual,

    • (ii) a nominee broker must assign the same code to an individual in respect of all deposits made by the nominee broker at the same member institution that are held for the individual’s benefit under the same type of special income arrangement,

    • (iii) a nominee broker may assign the same code to an individual in respect of deposits that are held for the individual’s benefit under different types of special income arrangement.

• Marginal note:Same code as beneficiary and individual

  (3) A nominee broker must assign the same alphanumeric code under subsection (1) and paragraph (2)(c) to a person who is both a beneficiary of a deposit that is held under a special income arrangement and an individual for whose benefit a deposit is held under the same type of special income arrangement at the same member institution.

Marginal note:Records of member institution

• 7 (1) For the purpose of subsection 6(1) of the schedule to the Act, if the deposit is a nominee broker deposit, the trusteeship must be disclosed on the records of the member institution before the determination date by

  • (a) indicating that the deposit is held in trust by a nominee broker; and

  • (b) setting out the nominee broker’s legal name and address.

• Marginal note:Interest or right of beneficiary

  (2) For the purposes of subsection 6(2) of the schedule to the Act, if the deposit is a nominee broker deposit, the trusteeship must be disclosed on the records of the member institution before the determination date by

  • (a) indicating that the deposit is held in trust by a nominee broker;

  • (b) setting out the nominee broker’s legal name and address; and

  • (c) setting out the alphanumeric code assigned to the beneficiary in respect of the deposit in accordance with subsection 6(1).

• Marginal note:Interest or right of beneficiary

  (3) For the purposes of subsection 6(3) of the schedule to the Act, if the deposit is a nominee broker deposit, a beneficiary’s interest or right in the deposit must be disclosed on the records of the member institution before the determination date by

  • (a) indicating that the deposit is held in trust by a nominee broker;

  • (b) setting out the nominee broker’s legal name and address;

  • (c) setting out the alphanumeric code assigned to the beneficiary in respect of the deposit in accordance with subsection 6(1); and

  • (d) setting out the amount or percentage of the interest or right in the deposit associated with that code.

Marginal note:Special income arrangement

8 If a nominee broker deposit is held under a special income arrangement, the type of special income arrangement and each alphanumeric code assigned in relation to it in accordance with paragraph 6(2)(c) must be disclosed on the records of the member institution before the determination date.

Marginal note:Information to Corporation

9 For the purpose of subparagraph 7(1)(b)(iii) of the schedule to the Act, the nominee broker must provide the following information to the Corporation:

• (a) the type of special income arrangement, if any, associated with each alphanumeric code assigned in accordance with subsection 6(1);

• (b) each alphanumeric code assigned in accordance with paragraph 6(2)(c), as well as the name of the individual and the type of special income arrangement associated with it.

Marginal note:Form and manner of providing information

10 The information referred to in paragraph 7(1)(b) of the schedule to the Act must be provided electronically in a format that permits data extraction and manipulation.

Marginal note:Attestation

• 11 (1) An initial attestation referred to in paragraph 8(1)(b) of the schedule to the Act must

  • (a) set out the member institution’s name and the nominee broker’s legal name and mailing address;

  • (b) include, if the nominee broker states that they are capable of fulfilling the obligations set out in paragraph 7(1)(b) of the schedule to the Act, a description of the nominee broker’s policies and procedures for ensuring that they are capable of fulfilling those obligations;

  • (c) include, if the nominee broker states that they are not capable of fulfilling the obligations set out in paragraph 7(1)(b) of the schedule to the Act, an explanation of why they are not capable and their proposed actions and time frame for remedying the situation;

  • (d) be signed by the nominee broker or a senior officer of the nominee broker;

  • (e) set out the mailing address, email address and telephone number of the person who signed the attestation and, if the nominee broker is not an individual, of another senior officer of the nominee broker; and

  • (f) be sent electronically not later than the 30th day after the day on which the nominee broker becomes a party to the agreement or arrangement that requires the making of the attestation.

• Marginal note:Multiple agreements or arrangements

  (2) For greater certainty, if an initial attestation is required under more than one agreement or arrangement entered into by a nominee broker within a 30-day period, the nominee broker may make and send to the Corporation, not later than the 30th day after the day on which the first agreement or arrangement is entered into, a single attestation containing the names of all of the member institutions with which the agreements or arrangements are entered into.

• Marginal note:Update

  (3) An updated attestation referred to in paragraph 8(1)(b) of the schedule to the Act must

  • (a) set out the nominee broker’s legal name and mailing address;

  • (b) set out the name of each member institution with which the nominee broker has entered into an agreement or arrangement, highlighting any changes since the most recent updated attestation;

  • (c) include, if the nominee broker states that they are capable of fulfilling the obligations set out in paragraph 7(1)(b) of the schedule to the Act, a description of the nominee broker’s policies and procedures for ensuring that they are capable of fulfilling those obligations, unless they are unchanged since the nominee broker’s last updated attestation;

  • (d) include, if the nominee broker states that they are not capable of fulfilling the obligations set out in paragraph 7(1)(b) of the schedule to the Act, an explanation of why they are not capable and their proposed actions and time frame for remedying the situation;

  • (e) be signed by the nominee broker or a senior officer of the nominee broker;

  • (f) set out the mailing address, email address and telephone number of the person who signed the attestation and, if the nominee broker is not an individual, of another senior officer of the nominee broker; and

  • (g) be sent electronically no later than May 31 of each year, starting in 2022, and within 10 days after any change to the nominee broker’s legal name or to their capability to fulfill the obligations set out in paragraph 7(1)(b) of the schedule to the Act.

Marginal note:Contact information

• 12 (1) For the purpose of paragraph 8(1)(c) of the schedule to the Act, the contact information that must be provided to the member institution consists of the name, mailing address, email address and telephone number of the nominee broker, if they are an individual, or of two senior officers of the nominee broker.

• Marginal note:Update

  (2) The contact information must be updated within 10 days after any change to it.