Regulation and Consumer Protection Flashcards
The Bank Act
Doesn’t cover investment products or insurance that bankers may sell.
Large Value Transfer System
Large transactions between financial institutions
Capital Requirements
Follow Suiss Basel 3 standard, report to OSFI
CDIC
100k for individual account, joint, rdsp, rrsp, rrif, resp, trust, tfsa, fhsa
LICAT
Capital requirement for life insurance companies. Also reports to OFSI, which can take control
Credit Union Coverage
100k federally regulated and 250k provincially in ontario. rrsp’s or tfsa, etc (fhsa not listed) coverage unlimited in ontario. must be canadian dollars.
Things not covered by CDIC
stocks, bond, mutual funds (including money market), bankers acceptances, t-bills, ppn’s, debentures (banks, governments, corps), deposits where the rights are to the bearer (holder)
CBA and CPA
CBA is association representing banks
CPA (Payments Canada) - facilitates most exchanges of money between banks
Assuris Coverage
CLHIA - usually works with assuris to get other insurer’s to buy the failing business’ assets
Death benefits covered 100% up to 1m, or 90% of promised amount, whichever is higher
Income covered 100% of to 5k per month or 90% of promised amount
health or sickness benefits - 250k or 90% of promised amount
Accumulation annuity (seg fund, accumulated value, cash value) 100% up to 100k or 90% of promised amount
no frat benefit society coverage
Property Coverage
250k of liability, legal expenses, creditor protections, boiler and machinery, automobile, accident and sickness, 300k home insurance
CIPF
I million for general (margin, cash, tfsa’s, fhsa’s), retirement accounts (rrif, rrsp, lira, lif), resps (based on subscriber)
OBSI/Arbitration
can recommend up to 350k for single complaint. arbitration is binding (up to 500k can be awarded). maximum for one complaint (even if it involves multiple accounts)
