CDIC Signage and Display Amendments

Summary#

The Canada Deposit Insurance Corporation (CDIC) made changes to the Canada Deposit Insurance Corporation Deposit Insurance Information By-law to clarify where CDIC signs and brochures are required and to tidy up some wording about warnings and advertising. The changes are registered as SOR/2020-272 and came into force on registration (December 13, 2020, published December 23, 2020).

What it does#

• Redefines the phrase "place of business" so CDIC signage and brochure displays are required only at physical locations in Canada where the majority of deposit-taking activities relate to deposits eligible for CDIC insurance. The new wording explicitly excludes automated teller machines (ATMs).
• Requires a member institution whose CDIC insurance is terminated or cancelled to immediately remove CDIC membership references from its places of business, its electronic business sites and its other websites and electronic sites.
• Clarifies how and where certain CDIC-related statements must appear:
  • If a receipt or instrument covers both CDIC-insured and uninsured deposits, the institution must place a warning statement on the face of that instrument in a specified location.
  • If a deposit or account opening starts by telephone, the institution must make an oral statement and give the person a written notice (paper or electronic) that includes an approved warning statement.
• Specifies that a member institution must make its list of trade names available on its website where a depositor would reasonably look and must provide that list to CDIC annually with its Return of Insured Deposits.
• Makes other minor wording changes to remove redundancies and align provisions with earlier revisions.

Who's affected#

• Canada Deposit Insurance Corporation (CDIC) member institutions — the firms that are members of CDIC and display CDIC signage and information at their locations and online.
• Depositors and people opening accounts in person or by telephone, who may see slightly different signage and will still receive required warning language and abbreviated brochures when opening eligible insured accounts.
• Provincial regulators and institutions that previously faced overlapping provincial and federal signage rules may see less duplication at some sites.

Why it matters#

• The main practical effect is fewer duplicate or confusing signs. Places that mainly take deposits not covered by CDIC will no longer be required to show CDIC signage, reducing clutter and potential confusion for customers.
• Consumers still get the core protections: warnings on mixed deposit receipts and required verbal and written notices when deposits are started by phone. Abbreviated brochures at account opening remain required for insured deposits.
• The changes aim to reduce unnecessary regulatory overlap between CDIC and provincial signage rules, while keeping depositors informed about what is and isn’t covered by federal deposit insurance.