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Feel Confident That Your Money Is Protected

The Government of Canada has made important changes to the rules governing how deposit insurance protection is provided for trust deposits by Canada Deposit Insurance Corporation (CDIC). These changes will take effect on April 30, 2022, and are designed to enhance deposit insurance coverage and ensure quick and accurate payments in case of a member institution (MI) failure.

Royal Bank of Canada and some of its subsidiaries1 are proud members of CDIC.

CDIC is not a bank, nor a private insurance company. CDIC is a federal Crown Corporation that contributes to the stability of the Canadian financial system by providing deposit insurance against the loss of eligible deposits at member institutions in the event of failure. It is funded by premiums paid by its member institutions, and it does not receive public funds to operate.

Deposit insurance changes coming into effect on April 30, 2022 include:

  • Separate coverage for up to $100,000 in eligible deposits held under Registered Education Savings Plans (RESPs)
  • 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 deposits held in one name).
  • New requirements for deposits held in trusts, including nominee brokered deposits that enhance CDIC’s ability to extend protection and reimburse them quickly after a CDIC member failure.

Find out more about the products at RBC that are eligible for CDIC deposit insurance: Deposit Register of Eligible Products.

Find Out More About the Instruments and/or Products at RBC® That Are Eligible.

Deposit Register of Eligible Products (opens PDF in new window)

Learn the Full Details of Coverage and Limitations Set by the CDIC.

Protecting your Deposits (opens PDF in new window)

For Further Information Concerning Funds Held in Trust:

Personal

The Government of Canada has made important changes to the rules governing how deposit insurance protection is provided for trust deposits by the Canada Deposit Insurance Corporation (CDIC) that will take effect on April 30, 2022. RBC is a proud member of the CDIC and as such is required to annually remind trustee depositors to provide RBC with updated beneficiary information. For more information about these changes, please visit: https://www.cdic.ca/financial-community/.

CDIC legislation requires trustee depositors to provide updated beneficiary information to their financial institution in order to ensure the right CDIC insurance coverage for eligible deposits is extended to each beneficiary where there are multiple beneficiaries of a trust account. The law requires financial institutions to remind trustee depositors of their disclosure requirement every year. If the account has been closed over the course of the year please disregard this notice.

If this information is not provided to RBC, RBC will use the latest beneficiary information on record. If the information is out of date, each beneficiary may not receive separate CDIC insurance coverage on eligible deposits, up to a $100,000 per beneficiary.

Note: If a trust account is not identified as a trust account on our records, funds in that account may be aggregated with all other accounts of the depositor for purposes of determining the maximum eligible CDIC coverage.

FAQs for Personal Clients(opens new window)

Business

The Government of Canada has made important changes to the rules governing how deposit insurance protection is provided for trust deposits by the Canada Deposit Insurance Corporation (CDIC) that will take effect on April 30, 2022. RBC is a proud member of CDIC and as such is required to annually remind trustee depositors to provide us with updated beneficiary information. For more information about these changes, please visit: https://www.cdic.ca/financial-community/.

CDIC legislation requires trustee depositors to provide updated beneficiary information to their financial institution in order to ensure the right CDIC insurance coverage for eligible deposits is extended to each beneficiary where there are multiple beneficiaries of a trust account. The legislation requires financial institutions to remind trustee depositors of their disclosure requirement every year. If the account has been closed over the course of the year, please disregard this notice.

The legislation, coming into effect on April 30, 2022, creates three types of trust deposits with different legal disclosure requirements:

  • A nominee broker deposit
  • A deposit held in an account identified as a professional trustee account
  • A deposit made in trust by a trustee not identified as a professional trustee or a nominee broker.

The rules for a professional trustee account only apply if the professional trustee requests that the account be identified as such.

The upcoming CDIC rules for trust deposits introduce new categories of trustees, along with several new unique disclosure requirements that these trustees must meet. The new categories of trustees are:

  • Professional Trustees – depositors who hold deposits in trust at a CDIC Member Institution and meet the definition of “professional trustee” set out in the CDIC Act. Professional Trustees may be eligible and choose to designate their accounts as professional trustee accounts.
  • Trustees – depositors who hold deposits in trust at a CDIC Member Institution and the deposit is not a nominee broker deposit or a deposit held in a professional trustee account.

Your responsibilities as a Trustee Depositor

Trustee depositors are responsible for updating and providing us with the following information with respect to each deposit held in trust by them to ensure that each beneficiary of the deposit receives separate deposit insurance protection:

  • Confirmation that the deposit is held in trust;
  • The full name of each trustee of the deposit and the address of at least one trustee;
  • The name and address of each beneficiary of the deposit account; and
  • The beneficial ownership interest of each beneficiary of the trust, if there is more than one beneficiary, expressed as either an amount ($) or a percentage (%).

FAQs for Business Clients(opens new window)

Ensure Beneficiaries of the Funds Held in Trust are Eligible for Maximum CDIC Coverage.