Securities Evaluation

Chapter-3 Canadian Regulatory Environment

Who are the Regulators?

* Office of the superintendent of Financial Institutions (OSFI) was established in 1987 and is a simple regulatory body for all federally regulated financial institutions

* they look after banks, trust and loan companies and cooperatives, insurance companies and federal pension plans

* they also give advice to the government of Canada

* Canada deposit insurance corporation (CDIC) is a federal crown corporation, provides deposit insurance and provides stability to the financial system

* It insures deposits up to 100 000

* To be eligible deposits must be made in Canadian currency and payable in Canada

* And must be held at a CDIC member firm (meaning bank, trust or w.e just be a member)

Accounts and products insured by CDIC

* Savings and chequing accounts

* GIC and other term deposits with maturity less than 5 years

* Money orders, travelers cheques and certified cheques

* Accounts that hold realty taxes on mortgaged properties

CDIC does not insure:

* Mutual funds and stocks

* Term deposits over 5 years maturity

* Bonds and treasury bills

* Debentures

* Accounts held in foreign currency

* Any non CDIC members

Deposit categories for CDIC, which you can recover more than 100000 if you are in more than one of these categories:

* In one name

* Jointly in more than one name

* In a trust account

* In a RRSP

* In a registered retirement income fund RRIF

* In a mortgage tax account

Credit Union Deposit insurance corporation

In each province you have at least one organization to protect credit union deposits, this is usually called deposit insurance and terms and maximum coverage vary depending on province

Provincial Regulators:

* In Canada regulation of securities business is a provincial responsibility.

* In Quebec the regulatory body is neither a securities commission or a securities...