Remove foreign-currency deposit phone disclosures

Summary#

The Regulations Amending Certain Regulations Concerning Disclosure on Account Opening by Telephone Request (SOR/2021-126) remove outdated disclosure rules that told people opening accounts by phone that foreign‑currency deposits were not insured. The change took effect on June 10, 2021, after the Canada Deposit Insurance Corporation Act was changed on April 30, 2020 to extend deposit insurance to foreign currencies.

What it does#

• Repeals paragraph 2(1)(e) from three disclosure regulations so they no longer require a warning that foreign‑currency deposits are not insured:
  • Disclosure on Account Opening by Telephone Request (Banks) Regulations
  • Disclosure on Account Opening by Telephone Request (Trust and Loan Companies) Regulations
  • Disclosure on Account Opening by Telephone Request (Authorized Foreign Banks) Regulations
• Brings those disclosure rules into line with the change in the Canada Deposit Insurance Corporation Act that extended CDIC coverage to foreign‑currency deposits.

Who's affected#

• Banks, trust and loan companies, and authorized foreign banks that give account‑opening information by telephone.
• Customers who open deposit accounts by phone may notice different or no longer required warnings about foreign‑currency insurance.
• It is not clear that any other groups are affected.

Why it matters#

• It prevents federally regulated financial institutions from giving customers incorrect information about deposit insurance.
• It aligns consumer disclosures with the law change on April 30, 2020 that extended deposit insurance to foreign currencies.
• The government says the change has no new cost to businesses and should not affect small businesses.