The Government of Canada has amended the Canada Deposit Insurance Corporation (CDIC) Act to modernize and enhance Canada’s deposit insurance framework. Changes will come into force in two phases.
Changes as of April 30, 2020 are:
- expanded coverage of eligible deposits held in foreign currencies;
- extended coverage of eligible deposits with terms greater than 5 years;
- elimination of coverage for travellers’ cheques (travellers’ cheques are no longer issued by CDIC member institutions); and
- separate coverage for up to $100,000 in eligible deposits held under Registered Education Savings Plans (RESPs).
Changes as of April 30, 2021 are:
- separate coverage for up to $100,000 in eligible deposits held under Registered Disability Savings Plans (RDSPs);
- removal of separate coverage for deposits in mortgage tax accounts (these deposits will be combined with eligible deposits in other categories such as savings in one name); and
- new requirements for deposits held in trusts, including nominee brokered deposits that enhance CDIC’s ability to extend protection to these deposits and reimburse them quickly after a CDIC member failure.
For further details, you can refer to http://www.cdic.ca/ .