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

Interpretation

1 The definitions in this section apply in this By-law.

Act

Act means the Canada Deposit Insurance Corporation Act. (Loi)

CDIC

CDIC means the Canada Deposit Insurance Corporation. (SADC)

electronic business site

electronic business site means a website or other electronic site that is used by a member institution to carry on business and at which a person may make a deposit or commence a transaction to open a deposit account with or without the assistance of a representative of the member institution, and, for greater certainty, includes an automated teller machine. (site d’affaires électronique)

place of business

place of business means a physical location in Canada where a member institution carries on business, where a person may make a deposit or commence a transaction to open a deposit account with the assistance of a representative of the member institution and where the majority of the deposit-taking activities relate to deposits eligible to be insured by the Corporation, but does not include an automated teller machine. (lieu d’affaires)

point of service

point of service[Repealed, SOR/2017-215, s. 1]

Return of Insured Deposits

Return of Insured Deposits means the form of return of insured deposits established by the Corporation in accordance with subsection 22(1) of the Act. (Déclaration des dépôts assurés)

General

2 No person shall make any false, misleading or deceptive representation with respect to

• (a) what constitutes, or does not constitute, a deposit;

• (b) what constitutes, or does not constitute, a deposit that is insured by the Corporation; or

• (c) who is a member institution.

• 3 (1) When a member institution makes representations with respect to any of the matters referred to in paragraphs 2(a) to (c), the representations shall be made in accordance with sections 4 to 11.

• (2) A member institution whose policy of deposit insurance is terminated or cancelled shall immediately remove from each of its places of business, each of its electronic business sites and each of its other websites and electronic sites all references to its status as a member institution and to the deposit insurance provided by the Corporation, including displays of the membership sign, brochure and badge.

• (3) When a member institution ceases to use a location as a place of business, it shall remove from the location all references to its status as a member institution and to the deposit insurance provided by the Corporation, including displays of the membership sign, brochure and badge.

• (4) When a member institution is required to display or elects to display a membership sign or badge in digital form, changes may be made to its overall size, but only if the proportions of the sign or badge, as supplied by the Corporation, are maintained and the content is clearly visible and legible.

3.1 [Repealed, SOR/2017-215, s. 3]

Representations About Membership

Representations in Advertisements

• 4 (1) If a member institution makes a representation about its status as a member institution in its advertising, other than by displaying the membership sign or badge, it shall use one of the following representations, or a representation in substantially the same words as any of the following representations:

  • (a) “Member of the Canada Deposit Insurance Corporation” (or “A Canada Deposit Insurance Corporation member”);

  • (b) “Member of the CDIC” (or “A CDIC member”);

  • (c) “(name of the member institution) is a member of the Canada Deposit Insurance Corporation”; or

  • (d) “(name of the member institution) is a member of the CDIC”.

• (2) The representations may appear anywhere in the advertising of a member institution, if the location at which and the manner in which they are displayed do not give the impression that

  • (a) a person is a member institution when they are not a member institution; or

  • (b) a deposit is insured by the Corporation when it is not eligible to be insured by the Corporation.

• (3) [Repealed, SOR/2019-186, s. 1]

Display of Membership Sign

• 5 (1) A member institution shall prominently display a membership sign supplied by the Corporation

  • (a) in physical form, at each entrance to each of its places of business so that the membership sign is clearly visible during business hours; and

  • (b) in physical or digital form, within each of its places of business so that the membership sign is clearly visible during business hours from the main areas of each of those places of business.

• (2) A member institution shall display the membership sign in digital form on the home page of its website, either directly or by way of a single hyperlink that links to a page on its website where information about its status as a member institution is available.

• (3) A member institution shall ensure that the location at which and the manner in which the membership sign is displayed does not give the impression that

  • (a) a person is a member institution when they are not a member institution; or

  • (b) a deposit is insured by the Corporation when it is not eligible to be insured by the Corporation.

Representations Concerning Deposits and Deposit Insurance

Display and Provision of Brochure

• 6 (1) A member institution shall prominently display a brochure in physical form, supplied by the Corporation for that purpose, at each of its places of business and shall also make copies of the brochure available there to depositors and all other persons.

• (2) A member institution shall, as part of the account opening process for a deposit that is eligible to be insured by the Corporation, provide a depositor

  • (a) if all account opening documents are provided only in digital form, with the digital form of a brochure supplied by the Corporation;

  • (b) if all account opening documents are provided only in physical form, with a printed version of the digital form of the brochure; or

  • (c) in any other case, with either the digital form of the brochure or a printed version of that digital form.

• (3) The physical and digital form of the brochures shall contain the following:

  • (a) general information about the Corporation;

  • (b) contact information for the Corporation;

  • (c) the Corporation’s logo or other identifiers;

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

  • (e) the maximum amount of deposit insurance coverage provided by the Corporation; and

  • (f) information as to what a depositor needs to know when the Corporation is obliged to make an insurance payment.

• (4) For greater certainty, a member institution, or any other person, may make representations about the subject matter of the brochure if the representation is not false, misleading or deceptive.

• (5) A member institution shall ensure that the location at which and the way in which the brochure is displayed does not give the impression that

  • (a) a person is a member institution when they are not a member institution; or

  • (b) a deposit is insured by the Corporation when it is not eligible to be insured by the Corporation.

Display of Badge

• 7 (1) Subject to subsections (2), (3) and (5), a member institution shall prominently display the digital form of a badge supplied by the Corporation at each of the following locations on its electronic business sites, other than automated teller machines:

  • (a) the home page;

  • (b) the landing page for each deposit product eligible to be insured by the Corporation;

  • (c) the first page that appears after logging on that displays deposits that are eligible to be insured by the Corporation; and

  • (d) each page where the membership sign is displayed.

• (2) A member institution shall prominently display the badge supplied by the Corporation in either physical or digital form at each of its automated teller machines at which a person may make deposits.

• (3) A member institution that shares the home page for an electronic business site with a person other than a member institution shall not display the badge on the home page.

• (4) The badge, whether in physical or digital form, shall contain, at a minimum, the Corporation’s logo or other identifiers. The badge in digital form shall also contain a hyperlink to the contents of the brochure referred to in subsection 6(3), unless the badge is being displayed on an automated teller machine.

• (5) A member institution shall ensure that the location at which and the way in which the badge is displayed does not give the impression that

  • (a) a person is a member institution when they are not a member institution; or

  • (b) a deposit is insured by the Corporation when it is not eligible to be insured by the Corporation.

7.1 [Repealed, SOR/2017-215, s. 6]

7.2 [Repealed, SOR/2017-215, s. 7]

Federal Credit Unions: Statement of Transitional Coverage

• 8 (1) A federal credit union shall prepare a statement of transitional coverage that contains the following information which has been verified by the Corporation:

  • (a) the purpose of the statement;

  • (b) a description of the deposit insurance coverage provided by the Corporation that applies to the pre-existing deposits of the federal credit union during the transition period;

  • (c) the day on which the deposit insurance coverage referred to in paragraph (b) expires; and

  • (d) a description of the deposit insurance coverage provided by the Corporation that will apply to the deposits of the federal credit union after the transition period expires.

• (2) A federal credit union shall, beginning on the day on which it becomes a member institution and ending on the day on which the transition period expires,

  • (a) make the statement of transitional coverage available by way of a hyperlink on every page of its website that refers to deposit products; and

  • (b) make a copy of the statement available to depositors at each of its places of business.

• (3) A federal credit union shall, for a period of 180 days after the day on which it becomes a member institution, prominently display, at each of its places of business, a sign that refers depositors and all other persons to the statement of transitional coverage and indicates how they can obtain a copy of that statement.

• (4) Subject to subsection (5), a federal credit union shall, not earlier than 12 weeks but not later than 4 weeks before the end of the transition period, provide to a depositor in respect of any pre-existing deposit that exceeds $100,000 and is to be repaid on a fixed day, a copy of the statement of transitional coverage or an indication of how they can obtain a copy of that statement.

• (5) A federal credit union that has provided to a depositor a copy of the statement of transitional coverage in respect of a pre-existing deposit, or given to a depositor an indication of how that copy can be obtained, is not required to provide to the same depositor in respect of any other pre-existing deposit a copy of the statement or an indication of how the copy can be obtained.

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.