Canada Deposit Insurance Corporation Trust Account Reporting Frequently Asked Questions

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Go to What does the repeal of section 71 of the Real Estate Services Rules (“Rules”) mean?
Go to Is the brokerage still required to annually provide their financial institution with the following:• Written notice that the account is a pooled trust account; and• A list identifying each person on whose behalf money is held in the account and the amount being held for each person?
Go to Is the brokerage still required to maintain a list identifying each person on whose behalf money is held in the pooled trust account and the amount being held for each person?
Go to Will the repeal of section 71 impact brokerages with trust accounts held in credit unions regulated by the Government of British Columbia?

Canada Deposit Insurance Corporation (“CDIC”) is amending its deposit insurance protection rules in April 2022. The amendments may allow professional trustees, such as brokerages licensed under the Real Estate Services Act, to designate certain accounts as professional trustee accounts with their financial institution and benefit from streamlined information reporting requirements.

Under the CDIC rule amendments, brokerages will only need to provide beneficiary information to CDIC upon request, rather than annually as section 71 currently requires. To benefit from these changes, brokerages must opt into the streamlined reporting requirements and attest annually to meeting eligibility requirements. If a brokerage does not opt in or fails to meet its reporting requirements, its deposits will be considered general trust accounts, which means the detailed beneficiary information reporting requirements will continue to apply.

The repeal of section 71 will harmonize the Rules with federal requirements, enabling brokerages to designate certain accounts as professional trustee accounts with their financial institution and benefit from the upcoming streamlined information reporting
If a brokerage decides to opt into the streamlined reporting requirements, it will no longer have to annually provide the abovementioned documents to their financial institution to satisfy CDIC’s requirements. However, managing brokers should reach out to their financial institution to ensure that their brokerage is compliant with CDIC’s requirements as well as any additional requirements established by their financial institution, if any.
Yes. This is still required as per section 81 of the Rules.
No. Section 71 only applies to brokerages with a pooled trust account in a savings institution other than a credit union. Therefore, the repeal of this Rule will have no impact on brokerages that have trust accounts with credit unions.

What does the repeal of section 71 of the Real Estate Services Rules (“Rules”) mean?

Is the brokerage still required to annually provide their financial institution with the following:• Written notice that the account is a pooled trust account; and• A list identifying each person on whose behalf money is held in the account and the amount being held for each person?

Is the brokerage still required to maintain a list identifying each person on whose behalf money is held in the pooled trust account and the amount being held for each person?

Will the repeal of section 71 impact brokerages with trust accounts held in credit unions regulated by the Government of British Columbia?

What does the repeal of section 71 of the Real Estate Services Rules (“Rules”) mean?

Is the brokerage still required to annually provide their financial institution with the following:• Written notice that the account is a pooled trust account; and• A list identifying each person on whose behalf money is held in the account and the amount being held for each person?

Is the brokerage still required to maintain a list identifying each person on whose behalf money is held in the pooled trust account and the amount being held for each person?

Will the repeal of section 71 impact brokerages with trust accounts held in credit unions regulated by the Government of British Columbia?

Is the brokerage still required to annually provide their financial institution with the following:
• Written notice that the account is a pooled trust account; and
• A list identifying each person on whose behalf money is held in the account and the amount being held for each person?