On behalf of the Canadian Deposit Insurance Corporation (CDIC), the Office of the Superintendent of Bankruptcy is informing Licensed Insolvency Trustees (LITs) that the government made important changes to the rules governing deposit insurance protection for deposits held ”in trust” at CDIC member institutions. The changes took effect and introduced new disclosure requirements for Trustees.
Under the new rules, certain trustees who hold deposits in trust for clients, in a professional capacity, are now able to designate some, or all their accounts as Professional Trustee Accounts (PTA). Trustees who designate their trust accounts as PTAs will benefit from streamlined beneficiary reporting requirements.
If you are a Trustee who holds eligible deposits in trust at a CDIC member institution in your professional capacity, you may be a Professional Trustee. For the purposes of CDIC deposit insurance protection, it is not expected that LITs will have to maintain beneficiary lists beyond what they are already collecting in the course of their normal business. In an unlikely event that a CDIC member institution fails, the LIT must be able to provide deposit information as required by CDIC for Professional Trustee accounts.
For more information on the rules governing deposit insurance protection for trust deposits and to determine if you might be a Professional Trustee, please visit: For Trustees - cdic.ca. For questions, please contact the CDIC at firstname.lastname@example.org.