Canada Deposit Insurance Corporation Deposit Insurance Information By-law (SOR/96-542)

Warning Statements for Ineligible Deposits

• 9 (1) Subject to subsection (2), if a member institution issues an instrument to a person evidencing that the member institution has received or is holding money that constitutes a deposit that is not eligible to be insured by the Corporation, the member institution shall include on the face of the instrument a warning statement in substantially the same words as one of the following statements:

  • (a) “Not insured by the CDIC”;

  • (b) “Not insured by the Canada Deposit Insurance Corporation”; or

  • (c) “The deposit evidenced by this instrument does not constitute a deposit that is insured under the Canada Deposit Insurance Corporation Act”.

• (2) If a member institution issues an instrument to a person evidencing that the member institution has received or is holding money that constitutes both a deposit that is eligible to be insured by the Corporation and a deposit that is not eligible to be insured by the Corporation, the member institution shall include on the face of the instrument, in the location specified, a warning statement in substantially the same words as one of the following statements:

  • (a) [Repealed, SOR/2019-186, s. 4]

  • (b) “The following deposits evidenced by this instrument do not constitute deposits that are insured under the Canada Deposit Insurance Corporation Act:” before the list of deposits that are not eligible to be insured by the Corporation;

  • (c) “Not insured by the CDIC” beside the reference to each deposit that is not eligible to be insured by the Corporation;

  • (d) “Not insured by the Canada Deposit Insurance Corporation” beside the reference to each deposit that is not eligible to be insured by the Corporation; or

  • (e) “Not insured by the CDIC” in a footnote the reference mark for which is located beside the reference to each deposit that is not eligible to be insured by the Corporation.

• (3) If a person communicates by telephone with a member institution to make a deposit or commence a transaction to open a deposit account referred to in subsection (1) or (2), the member institution shall

  • (a) make an oral representation in substantially the same words as one of the statements set out in subsection (2); and

  • (b) issue to the person in writing, in paper or electronic form, a notice that includes one of the statements set out in subsection (2).

• 9.1 (1) [Repealed, SOR/2019-186, s. 5]

• (2) If a member institution elects to affix a warning statement to any document evidencing that the member institution has received or is holding money that does not constitute a deposit that is eligible to be insured by the Corporation, the statement shall be in substantially the same words as one set out in one of paragraphs 9(1)(a) to (c).

9.2 [Repealed, SOR/2017-215, s. 10]

Lists of Trade Names and Financial Products

10 A member institution shall not, in the course of its deposit-taking activities relating to deposits eligible to be insured by the Corporation, use one of its trade names in its representations about who is a member institution, what constitutes a deposit or what constitutes a deposit that is insured by the Corporation, unless the member institution

• (a) prepares and maintains an up-to-date list of those trade names;

• (b) makes the list available on its website in a location that a depositor would be reasonably expected to look for information about the member institution’s trade names;

• (c) provides the Corporation with a copy of the list with its Return of Insured Deposits;

• (d) provides the Corporation with not less than 15 days’ notice of any new trade name to be used in the course of its deposit-taking activities relating to deposits eligible to be insured by the Corporation and the date of the intended first public use of that trade name by the member institution; and

• (e) permits the Corporation to make the contents of the list, and any updates to the list, available to the public.

• 11 (1) A member institution shall prepare and maintain an up-to-date list of each type of instrument evidencing that the member institution has received or is holding money from or on behalf of a person

  • (a) that constitutes a deposit that is eligible to be insured by the Corporation;

  • (b) that is or is to be set out in the member institution’s Return of Insured Deposits; and

  • (c) in respect of which the Corporation collects a premium in accordance with section 21 of the Act.

• (2) The list shall be

  • (a) in printed form; or

  • (b) entered or recorded by any system of mechanical or electronic data processing or any other information storage device that is capable of reproducing any required information in intelligible written form within a reasonable time.

• (3) A member institution shall provide a copy of the list to the Corporation with its Return of Insured Deposits.

Statement Regarding Compliance

12 A member institution shall state whether or not it is in compliance with this By-law and shall submit that statement with the Return of Insured Deposits.