Industry Regulators
Office of the Superintendent of Financial Institutions
Canada has one of safest and most advanced financial systems in the world. To maintain confidence in the system and ensure its continued stability, the banks work closely with regulators such as the Office of the Superintendent of Financial Institutions (OSFI). OSFI has regulatory powers under several acts of Parliament to monitor the financial condition of federally regulated financial institutions. OSFI regulates the operations of more than 140 deposit taking institutions in Canada, including domestic banks, foreign bank subsidiaries, foreign bank branches, trust companies, loan companies and cooperative credit unions.
Financial Consumer Agency of Canada
The Financial Consumer Agency of Canada (FCAC) was created by the federal government in October 2001 to oversee consumer protection in the federally regulated financial services sector. FCAC supervises financial institutions to ensure they comply with federal consumer protection measures. The agency also monitors financial institutions to ensure they adhere to their voluntary codes and commitments. FCAC’s mandate includes educating consumers about their financial rights and responsibilities. Agency operations are funded through assessments on the financial institutions it oversees.
Canada Deposit Insurance Corporation
In case of their failure, the Canada Deposit Insurance Corporation (CDIC) protects money deposited in member financial institutions for up to $100,000, including interest. To be eligible for protection, your deposit must be made in Canada, in Canadian currency. CDIC is a federal Crown corporation whose members include banks, trust companies and loan companies.
CDIC members fund deposit insurance through premiums paid on the insured deposits they hold. Members display this sign:
What does CDIC insure?
- Savings and chequing accounts
- Term deposits, such as guaranteed investment certificates (GICs) and debentures issued by loan companies
- Money orders and drafts
- Certified drafts and cheques
- Traveller’s cheques issued by members.
What doesn’t CDIC insure?
- Foreign currency deposits (e.g. accounts in U.S. dollars)
- Term deposits with a maturity date of more than five years from the date of deposit
- Debentures issued by banks; bonds and debentures issued by governments and corporations
- Treasury bills
- Investments in mortgages, stocks and mutual funds
Deposit Register
You may confirm whether a specific product offered by a member institution is insurable by CDIC by asking the institution for the Deposit Register of its insurable products, which is available at all branches of the financial institution, or through links from the membership list on CDIC’s website.
More information?
CDIC has a free brochure called Protecting Your Deposits which is available in bank branches or by calling 1-800-461-CDIC or visiting the website at http://www.cdic.ca/; e-mail: info@cdic.ca.
