By-law Amending the Canada Deposit Insurance Corporation Co-owned and Trust Deposit Disclosure By-law: SOR/2023-38

Canada Gazette, Part II, Volume 157, Number 7

Registration
SOR/2023-38 March 7, 2023

CANADA DEPOSIT INSURANCE CORPORATION ACT

The Board of Directors of the Canada Deposit Insurance Corporation makes the annexed By-law Amending the Canada Deposit Insurance Corporation Co-owned and Trust Deposit Disclosure By-law under paragraph 11(2)(g)footnote a of the Canada Deposit Insurance Corporation Act footnote b and section 14footnote c of the schedule to that Act.

Ottawa, March 3, 2023

Leah Anderson
President and Chief Executive Officer of the Canada Deposit Insurance Corporation

By-law Amending the Canada Deposit Insurance Corporation Co-owned and Trust Deposit Disclosure By-law

Amendment

1 The definition special income arrangement in subsection 1(1) of the Canada Deposit Insurance Corporation Co-owned and Trust Deposit Disclosure By-law footnote 1 is amended by adding the following after paragraph (c):

Coming into Force

April 1, 2023

2 This By-law comes into force on April 1, 2023, but if it is registered after that day, it comes into force on the day on which it is registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the By-law.)

Background

Pursuant to paragraph 11(2)(g) and section 5 of the Schedule to the Canada Deposit Insurance Corporation Act (the CDIC Act), the Canada Deposit Insurance Corporation (CDIC) board of directors is authorized to make or amend by-laws related to the depositor records maintained by a member institution for deposit insurance coverage. The Canada Deposit Insurance Corporation Co-owned and Trust Deposit Disclosure By-Law (the By-law) prescribes the information to be disclosed on the records of a member institution for a deposit to receive separate insurance coverage under the trust, jointly held and special income arrangement categories. The By-law was made on August 2, 2019, and came into force on April 30, 2022.

Issues

The Fall Economic Statement Implementation Act, 2022 (the FESIA) will amend section 5 to add subsection 5(3.1) of the schedule to the CDIC Act by adding to it the first home savings account, as defined in subsection 146.6(1) of the Income Tax Act. This will create an additional special income arrangement category that will receive separate insurance coverage.

Consequently, the definition of “special income arrangement” in the By-law must be amended to include the first home savings account.

Objective

The main objective of the By-law Amending the Canada Deposit Insurance Corporation Co-owned and Trust Deposit Disclosure By-Law (the Amending By-law) is to ensure the first home savings account is added to the defined term “special income arrangement” in subsection 1(1) of the By-law. The amendment is required for the By-law to align with the Schedule to the CDIC Act.

Description

The following table provides more details about the Amending By-law.

By-law section Explanation
1(1) Adds the first home savings account to the defined term "special income arrangement"

One-for-one rule

The one-for-one rule does not apply to this Amending By-law.

Small business lens

The small business lens does not apply to this Amending By-law.

Alternatives

There are no available alternatives. It must be done by way of an amending By-law.

Consultation

The Amending By-law is a necessary consequential amendment given section 5 of the Schedule to the CDIC Act is being amended by Parliament. As such, no consultation is required.

Rationale

The Amending By-law ensures that the By-law accords with the Schedule to the CDIC Act. The Amending By-law itself will not impose any additional regulatory costs or administrative burden on CDIC member institutions. Any additional regulatory costs or administrative burdens on member institutions would arise solely as a result of the Parliamentary amendment itself, and/or the member institution’s decision to offer a first home savings account.

Implementation, compliance and enforcement, and service standards

The Amending By-law will come into effect on the day on which the FESIA amendment to section 5 of the Schedule to the CDIC Act comes into force, which is anticipated for April 1, 2023. If the Amending By-law is registered after April 1, 2023, it comes into force on the day on which it is registered. There are no compliance or enforcement issues.

Contact

Tessa Warmelink
Senior Legal Counsel
Canada Deposit Insurance Corporation
50 O’Connor Street, 17th Floor
Ottawa, Ontario
K1P 6L2
Telephone: 613‑324‑9439
Email: twarmelink@cdic.ca