Prescribed Deposits (Trust and Loan Companies Without Deposit Insurance) Regulations

The Prescribed Deposits (Trust and Loan Companies Without Deposit Insurance) Regulations are a set of rules made under the Trust and Loan Companies Act in Canada. The regulations, which came into force on March 8, 2008, provide for the types of deposits that are considered "prescribed deposits" for trust and loan companies without deposit insurance.

These prescribed deposits include certain amounts from government agencies and foreign governments, international agencies, financial institutions, pension funds with assets exceeding $100 million, and mutual funds regulated under a province's laws or those outside Canada. The regulations also cover entities with gross revenues exceeding $5 million and provide services such as lending money, dealing in foreign exchange, or dealing in securities.

The primary objective of these regulations is to create a level playing field for trust and loan companies operating in Canada while ensuring that the deposit insurance system remains stable. By defining specific types of deposits as prescribed, the regulations aim to prevent abuse and protect depositors from excessive risks associated with certain investments.