PROTECTION FOR YOUR CLIENTS UP TO $100,000 FOR …

1 CE Mo duleOn Ju ne 4, 1996, abo ut 2,600 Ca na dia nsdis cov eredthat their sa vings were no t immediatel y availa bl e fromtheir fina ncia l ins tit utio n. They ha d entr us ted a tot al of$42 mil lion in dep osit s to Calga ry-b as ed Secur it yHome Mortga ge Cor po ratio n, which ha d no w cl osedit s doors fo r goo d. The ne ws mus t ha ve moment aril ysent a shiv er of fear thro ugh each one of this financ ia lins tit utio n s client rt una tely ,this fa iled fina ncia lins tit utio n wa s a memberof the Cana da Depo sitIns ura nc e Co rp ora tio n (CD IC) and CD IC ma depay ment of all insu red dep os it wing that their savings are pro tec ted agains tfail ure help s Ca na dia ns feel conf ident abo ut keepingtheir sa vings in bank s and other fina nc ia l ins tit ut io nsthat are CD IC memb er it s creat io n in 1967,CDIC has step ped in to hel p dep osit ors fo llowing thefail ure of 43 memb er inst it ut io ns lik e Sec urit y Ho fact ,dur ing the past four deca des, it ha s pro tect edmo re than two mill io n peo pl e ho lding abo ut$26bil lio n in insured depo sits at thes e fa iled inst it ut io ns.

2 Yet ma ny inv est ors are unawa re of the benefit s ofCDIC insur anc e when a memb er inst it ut io n fails .By comm unica ting thes e benefit s to yo ur cl ient s,youcan rea ss ure them tha t all or a por tio n of their lifesav ings will be pr ot ect ed if the fina ncia l inst it ut io n thatho lds their eligible dep osit s bec omes ins olv ent .Valu ab le info rmati onfor you r cl ientsPROTECTIONFORYOURCLIENTS UP TO $100,000 FOR EL IGIBLEDEPOSITSCOMPLIMENTARYCONTI NUING EDUCATIONCOURSEFOR FINANCIAL ADVISORSOBJECT IVEMan y inve sto rs are unaware of th e benefitsprov id edby the Can ad a De posit Insuran ce Corp or ation(C DIC) shoul d a memberin stitutionfail. Bycom mu ni ca ting the se ben efits to your CLIENTS , youcan re as sur e th em that all or a portion of their lif esav in gs wil l be pr ot ected if th e fin ancial institutionthat hol ds th eir el igi ble deposits becomes insolventan d is a mem be r of CDIC.

3 CDI C has pr epared asi mple con tin uing educatio n mod ule for fin ancialadvi so rs that inc lude s an examin ation com TRUCTIONSThis co urse is a simple read an dlearn pro gr am. The examin ationcomp on ent is comp osed of 16mu ltip le-c ho ice qu estions. Thequ est ion s are ba se d on mate rialfound in the co urse ,many ofwhic h are word-f tes will be issuedelect ro nica lly .CECR EDITS The CD IC s Co mplimentaryCont inuing Ed uc ati onCour se for Fina ncia lAdviso rsisac cred ited for one creditho ur by Th eInsti tute,theIQ PF and CS F, cred ithour with IIRO C. 2 A completelist of T IS CDIC ?CDI C is a fed eral Crow n cor por atio n created byPa rliame nt. It provid es insur ance to dep osi tors agai nstthe loss, in who le or in part, of depo sits mad e atmemb er institu ti on s, namely bank s, tr ust com pani es,loa n com pan ies and co operativecr edi t assoc iati ons tha thav e CD IC member shi p, in the even t of thei r fail ure.

4 It is im port an t to note th at some fin an cial ins titu -ti ons that ta ke de posits are NOT membersofCDI C f or ex am ple, credi t un ion s and ca isses popu -lair es ,Can adia n bra nches of fo rei gn ban ks and som eCanad ian char tered banks. De po sit s wit h credi t union sand ca isse s po pulai res may be cov ere d by provi ncialde po sit ins ur an ce pro gr ams. Ca na dia n bran ches offor eign ban ks ,an d those Cana dia n ch ar te red ban ks th atar e not CDI C membersare requ ired by law to infor mde po sitors that they are no t CDI C me mb ers an d thatsav ings at such ba nks are not insu does not re ceiv e fed eral tax dollars tofi na nce it s op era tions an d any necess arypay me nt s to depo sit ors .Ins tead ,its fun dingcome s dir ec tly fr om th e pr emium s pai d byme mbe r instituti ons.

5 CD IC is acco unt ableto Canada s Par lia ment th ro ugh the Mi nist er ofFi na nce. Th e Co rpora tion s acti ons ar e gove rne d bytheCanadaDepositInsuranceCorporationAc t,wh ic hde sc ribe s CD IC s ma nda te an d powers. CD IC is alsoempowe re d to pa ss its own by-laws dealing with va ri -ous ma tte rs. CD IC is an inter na ti onally rec ognizedde pos it insurer and many coun tr ies ha ve been eage r tolear n fr om CDIC s experienceas they adopt th eir ownde pos it insura nc e to protec t sm all dep ositors andmai nt ain confide nce in institut ion s tha t acc eptde pos AT S CO VE RE D?CD IC insur es elig ib le depo sit s at each CDIC memberins ti tuti on up to a maxi mum of$100, 000 (principaland int erest com bin ed) per depo sito be elig ible for dep os it in sur an ce, deposits mus tbe payab le in Can ada, and in Can adi an agen era l rule, a depo si t is cons ider ed to be paya ble inCa na da if it is held at a branch or off ice of a CDICmem ber instit uti on in Can ib le depo si ts in clud e savin gs acco unts, ch equi ngaccoun ts ,GICs or oth er ter m dep os its wi th an ori ginalterm to ma turity of five years or les s, money orders,cert if ied ch eq ues an d bank dr aft s issued by CDICmem bers, an d deben tur es issued to evidence dep ositsby CD IC mem bers (other tha n ba nks ).

6 WH AT S NOT COVERED?Not all dep os its and fin an ci al pro duct s held at CDICme mbe rins titution sare ins ur ab following are exam -ples ofwhat is NOTco ve re dby CDIC de posit insurance: an d other foreig n curren cy depo sits term depo si ts lon ger tha n fi ve years co rp or ate or go ver nmen t bon ds, debentur esan d no tes deben tur es iss ued by ban ks treas ury bil ls (T-bi lls ) ban kers acceptan ces pri nci pa l pro tected notes inves tm en ts in mo rtg ag es sto cks mutua l fun dsHO W DOE S CD IC CALCULATEIN SURAN CE ?Many peo ple de po sit mon ey into mo rethan one accountor finan cia lpr oduct. Forexample, youmight hav eapers ona lche qui ng accoun t,ajointsav ingsaccount wi th aspo use, aswe llasaGIC tha tis re giste redin an ta ke sthis into accoun t.

7 We insur eeli gi bledep os itsSEPAR AT EL Y(up to $100,000 ,includingpri nci pal an dinte rest) fo rEACH ofthe following: 3 CDICC ontinuingEducationModule Sa ving s he ld in on e na me (person al, busines s orothe r orga ni zat ion) Savi ng s hel d in mo re than one name (joi nt depo sit s) Savi ng s hel d in trust Savi ng s hel d in an RRSP Savi ng s hel d in a RRIF Savi ng s hel d inTFSAs Sa ving s he ld for payin g rea lty tax es on mort ga gedpro perti esSavi ng s He ld in OneNa meCDI C dep osit insu rance cover s mon ey held in eli gib leacco un ts and fin an cial prod ucts in the name of onedeposit or for example,an indivi dual, an assoc iati on ofperso ns, a partn ership, a cor po ration or a to$100 ,000 of the to tal amoun t in savi ngsacco un ts, chequ in g accounts,GI Cs or oth er termdeposit s with an orig inal term to maturit y of five ye arsor less, mon ey orders ,certifi ed cheq ues and bank draft siss ued by CD IC members, and debe ntu res issued toevide nce deposits by CDIC member s(o th er tha nbank s)

8 ,al l hel d in th e samename,are covere d. These de posi tsmu stbe held inCanadiandol la rsat aCD IC ng s He ld in MoreThanOne Name(Jo int Deposits)Sep ara te depo sit in surance cover ag e is pr ovi ded forel igi ble dep osits held in more than on e name (joi ntdeposit s) up to a maximumof$10 0,00 IC deposi t ins uran ce cover s mon ey held in eligi -ble join t acc ou nts and financialpr od ucts. Marr iedco uples, a par en t an d child, and busi ness partn ers areal l ex amples of peo ple wh o might have a joi nt accou ntor fi na nc ial pro duc covers up to$100 ,000 of the to ta l am ou nt insa vin gs ac counts ,ch eq uing acco unts ,GIC s or ot herte rm depo si ts wit h an ori ginal term to matu ri ty of fiveye ars or les s,mone y or de rs, cert if ied che ques and ban kdra fts is sued by CD IC memb ers ,and deb ent ures iss ue dto ev ide nce deposi ts by CDIC me mbe rs(other thanban ks) ,al l held (join tly )

9 In the sam e nam depositsmus tbehe ld inCana diandoll arsat aCDI C or der for th is sep arate dep osi t in su ra nce cov erageto appl y,th e rec ord s of th e memb er ins ti tut ion mu stsh ow that the dep os it is joint ly own ed an d co nta in th ena mes and add ress es of eac h of the joint own ers .Sav ings Held in Trus tSe pa ra te dep osi t ins uran ce cov er age is pro vi de d forel ig ibl e dep osits hel d in trus t up to a max imu mof$100 ,000 .CD IC depo sit ins uran ce covers money in eligibl eac co un ts and fina ncial prod uct s held in trust fo r an oth erpe rs on or pers ons .For ex ample ,a gra ndmother (thetru st ee ) migh t depos it money in trus t for her grandson(th e be ne fic iary ) to us e wh en he is an ad ult. El igiblede po sit s hel d in tr ust for anot her pers on (or per so ns)ar e in su re d sepa ra tel y fro m ot her dep os its held by th etr ust ee or a benef ici ary in his/her own nam e at th esa me CDI C mem ber ,to a max imum of$10 0, 000.

10 You r clie nt ha s the followi ng depo si ts at a CDICme mber in st it ut ion: Canadia n-do lla r sa vi ngs ac coun t wort h$15,000,incl udin g int ere st ear ned fi ve-y ea r GI Cs worth$20,000, in cluding in tere stearn ed sav in gs acco un t wo rth$10,000 mutua l fund inv estm ents wort h$15, the Can adi an -dollar sa vings acc ount and five -year GICs are eligible fo r dep os it ins urance ,so you rclien t wi ll rec ei ve$35,000 if the insti tution fa clien t has th e fol lowin g joint deposits at aCDIC mem ber in stit ut ion : elig ibl e depo sit s wo rth$75,000 held wit h a spouse elig ibl e depo sit s wo rth$75,000 held wit h a spousean d a ch ild elig ibl e depo sit s wo rth$125,000held wit h twobusi ne ss pa rtn e$75 ,000 held by yo ur client joint ly wit h aspo use is el ig ibl e for sep ar ate de po sit ins uranc e.