Professional trustees
On April 30, 2022, important changes to the rules governing deposit insurance protection for deposits held “in trust” at CDIC member institutions took effect. The changes impact certain trustees who hold deposits in trust for clients in a professional capacity. Please check back here regularly for updates about professional trustees and trust deposits.
It’s important to note that not all trustees are Professional Trustees. Only trustees who meet the following definition under the CDIC Act are Professional Trustees:
A Professional trustee means any of the following who is not a nominee broker:
- the public trustee of a province or a similar public official whose duties involve holding moneys in trust for others;
- a federal, provincial or municipal government, or a department or agency of such a government;
- a lawyer or partnership of lawyers, a law corporation, or a notary or partnership of notaries in the province of Quebec, when they act in that capacity as a trustee of moneys for others;
- a person who is acting as a trustee of moneys for others in the course of business and is required by or under a statute to hold the deposit in trust;
- a person who is acting as a trustee of moneys for others in the course of business and is subject to the rules of a securities commission, stock exchange or other regulatory or self-regulating organization that audits compliance with those rules; or
- a regulated federal or provincial trust company acting in the capacity of a depositor.
Not sure if you hold funds in a professional capacity?
Please use the to find out.
Do you hold monies in trust for others at a CDIC Member Institution?
CDIC Deposit Insurance
CDIC insures eligible deposits held at CDIC Member Institutions. CDIC insures eligible deposits to a maximum of $100,000 per insurance category, one of which is deposits held in trust.
For more information on eligible deposits and how CDIC protects your deposits, visit “What’s covered”.
Are you a:
- Public Trustee? A public trustee of a province or a similar public official whose duties involve holding moneys in trust for others qualifies as a Professional Trustee.
- Federal, Provincial, or Municipal government department, agency, or actor? A federal, provincial or municipal government, or a department or agency of such a government qualifies as a Professional Trustee.
- Lawyer or Notary? A lawyer or partnership of lawyers, a law corporation, or a notary or partnership of notaries in the province of Quebec, when they act in that capacity as a trustee of moneys for others qualifies as a Professional Trustees.
- Trust Company? A regulated federal or provincial trust company acting in the capacity of a depositor qualifies as a Professional Trustee.
Professional Trustee
The answers provided indicate you may qualify under the CDIC Act as a Professional Trustee.
As of April 30th 2022, Professional Trustees who hold deposits in trust at CDIC Member Institutions may opt into the Professional Trustee Disclosure Rules.
For more information on the Professional Trustee Rules and Disclosure Requirements visit For professional trustees and refer to What you need to know – Professional Trustees (PDF, 83 KB)
Are you a Person who holds funds in trust in the course of business?
Person: A Person includes an individual, an entity (such as a partnership, association, or corporation) or personal representative.
In the Course of Business: “In the course of business” includes the activities of a Person in their professional capacity. Where the Person is not an individual, this means all normal business activities.
Trustee
The answers provided indicate you do not qualify as a Professional trustee. CDIC continues to insure eligible deposits held in trust at CDIC Member Institutions up to $100,000 per beneficiary.
Trustees who hold deposits in trust at CDIC Member Institutions must meet certain disclosure requirements to ensure they receive appropriate deposit insurance coverage.
For more information on Trustee disclosure rules and the obligations of trustee depositors visit For Trustees and refer to What you need to know – Trustees (PDF, 83 KB).
Are you required by law to hold the deposit in trust?
Required by Law: A person is “required by law” where by, or under, legislation, regulation, or any other legal enactment a Person is required to hold funds in trust for another or a trustee relationship is created where the Person must act as a trustee for another.
Are you subject to the rules of securities commission, stock exchange, or other regulatory or self-regulatory organization that audits compliance with those rules?
Rules: Rules may be found in the form of regulations, bylaws, professional requirements, or any other binding rule that governs the, operation, license, and/or conduct of a person. The rules as set out by the Regulatory or Self-Regulatory Organization do not have to make specific provision for the creation of a trustee relationship, or how and why the money held in trust is deposited or otherwise kept.
Other Regulatory or Self-Regulatory Organization: Regulatory and self-regulatory organizations are those organizations created by, or under, statute with the power to make binding rules or regulations with respect to securities law, or those organizations that have delegated authority to regulate the conduct of their members and/or other securities market participants. Regulatory and self-regulatory organizations must have a mandate to regulate the operation, license and/or conduct of the Person.
Audits Compliance: An “Audit” includes any examination, investigation, or other review of the conduct or affairs of the Person. The audit must be conducted by, on behalf of, the Regulatory or Self-regulatory organization. The audit must, at least in part, concern compliance with the rules of the Regulatory or Self-Regulatory organization to which the Person is subject. The Audit may be conducted at set times or may be conducted at the discretion of the Regulatory or Self-Regulatory organization.
Rules for Trustees
Please refer to the questions below if you are a Professional Trustee and wish to know more about the new rules.
Why are these new rules important for trustees?
The new rules are important because they affect how deposits held by professional trustees receive deposit insurance protection, and how CDIC would address these deposits in the event of failure of a CDIC member institution.
How do the new rules differ from the current ones?
The new rules allow eligible professional trustees to designate certain accounts as professional trustee accounts (PTAs). By doing so, these trustees are no longer required to report beneficiary information to CDIC member institutions for these accounts, and instead only need to provide beneficiary information to CDIC upon CDIC’s request.
For more information, please consult this overview of the changes:
Do the new rules change how my deposits are protected?
No. CDIC continues to insure eligible deposits in trust to a maximum of $100,000 per beneficiary.
How do I designate an account a PTA?
Beginning April 30, 2022, Professional Trustees have the choice of designating one or more of their accounts PTAs. To designate an account a PTA, the Professional Trustee must provide the CDIC Member Institution which holds the account they wish to designate:
- An attestation indicating that they are a Professional Trustee; and
- The Professional Trustee’s contact information.
Upon providing an attestation and contact information, or as a part of the attestation, the Professional Trustee must request the account(s) be designated a PTA.
Each CDIC Member Institution may set out its preferred method of attestation. To determine how to provide an attestation to your CDIC Member Institution(s), please contact them directly.
How do I maintain and provide information for PTAs?
For accounts designated Professional Trustee Accounts, the Professional Trustee must maintain a record of beneficiary information associated with those accounts.
Upon request by CDIC, the Professional Trustee must provide that information to CDIC. CDIC lays out the specifications and formatting of the required information in the “Professional Trustee Data Requirements” document. To find out what information must be recorded, and how it must be provided, visit Professional Trustee Data Requirements.
How do I stay informed?
We encourage you to check back here regularly for updates about professional trustees and trust deposits. You can also subscribe to CDIC news to receive notifications when new information is posted to this section.
CDIC is committed to fostering awareness and understanding of the new framework among trustees.
We welcome your feedback, including any questions or comments. Please feel free to contact us at info@cdic.ca. You can also follow us on social media for regular updates and information about deposit insurance. We’re here to help!