Canada Deposit Insurance Corporation Co-owned and Trust Deposit Disclosure By-law

The Canada Deposit Insurance Corporation Co-owned and Trust Deposit Disclosure By-law is a regulation established by the Canada Deposit Insurance Corporation (CDIC). This By-law outlines the disclosure requirements for co-owned and trust deposits held at member institutions, effective August 2, 2019. The main objective of this By-law is to ensure transparency and accurate record-keeping of these types of deposits.

Co-owned Deposits: Section 2 of the By-law requires that co-ownership must be disclosed on the records of a member institution before the determination date by indicating that the deposit is co-owned, setting out each co-owner's name. This information will help identify who owns the deposit and ensure that all parties are aware of their responsibilities.

Trust Deposits: The By-law provides clear guidelines for disclosing trust deposits, ensuring that all relevant details are recorded correctly. For example, if a deposit is held in trust but not as a nominee broker or professional trustee account, it must be disclosed on the records of the member institution before the determination date. This includes setting out each trustee's name and address.

Nominee Broker Deposits: Nominee brokers play a crucial role in managing deposits on behalf of beneficiaries. The By-law requires that nominee brokers provide specific information to the member institution, including alphanumeric codes for tracking beneficiary interests and rights.

Professional Trustee Accounts: If a deposit is 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 indicating that the deposit is held in trust.