The Department of Finance Canada on Friday published a consultation paper on deposit insurance to ensure it continues to meet the evolving marketplace in the Canadian financial sector.
Among the proposals, the federal government is considering the addition of new deposit categories for RESPs and RDSPs, extending deposit insurance coverage to term deposits with terms of maturity greater than five years, and how to address brokered deposits and improve the disclosure of beneficiary information.
“Products covered by the deposit insurance framework are being reviewed to reflect the evolving marketplace in the Canadian financial sector,” Finance Canada says in its consultation paper.
“Any increase in the scope of the framework would result in a proportionate increase in Canada Deposit Insurance Corp. (CDIC) exposure, which would need to be offset through additional premiums paid by CDIC member institutions, thereby potentially affecting the cost of financial services,” the paper adds.
The consultation period for the proposals closes on Nov. 30.
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