CDIC expands deposit protection to RESPs and RDSPs

The Canada Deposit Insurance Corporation has expanded its coverage to Registered Education Savings Plans (RESPs) and Registered Disability Savings Plans (RDSPs).

Deposit protection will now cover up to $100,000 in both RESPs and RDSPs at the Crown corporation’s member institutions.

Coverage already included deposits of up to $100,000 in other accounts such as TFSAs, RRSPs and RRIFs, as well as regular deposits and trusts.

“With this expansion of coverage, nearly all personal deposit accounts at our members are fully protected by CDIC,” president and CEO Leah Anderson said in a statement.

The CDIC also introduced changes for deposits held in trust or placed through financial advisors. The amendments have different disclosure requirements depending on whether the trustee is a professional trustee, a general trustee or a nominee broker (such as a financial advisor or investment dealer).

“The implementation of these new rules will allow people who place deposits in this way to feel confident that their funds are well-protected when they are held at a CDIC member institution,” Anderson said.

The new coverage framework was announced in the 2019 federal budget and came into force April 30.

Staff

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