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.