Safety of Your Money

RGF is a member of, or is covered by, several regulatory organizations established to protect investor deposits.  This means that, within limits, your cash, securities and insurance policies are protected against insolvency.

CDIC

The Canadian Depository Insurance Corporation (CDIC) is a federal Crown corporation created in 1967 by the Canadian Parliament to guarantee deposits and provide depositors with peace of mind.

Most Canadian chartered banks are CDIC members, as are federally regulated trust and loan companies that take deposits, as well as associations governed by the Cooperative Credit Associations Act that take deposits.  What institutions are not members of CDIC?  Credit unions, caisses populaires (in Quebec), Canadian branches of foreign banks and some Canadian chartered banks.

Eligible deposits are insured at each CDIC member institution up to a maximum of $100,000 (principal and interest combined) per depositor.  To be eligible for deposit insurance, deposits must be payable in Canada and in Canadian currency.

Eligible deposits include savings accounts, chequing accounts, GICs or other term deposits with an original term to maturity of 5 years or less.   Money orders, certified cheques, bank drafts issued by CDIC members, and debentures issued by loan companies that are CDIC members are also insured.

What isn't covered by CDIC?  Foreign currency deposits and investments that aren't considered deposits, such as mutual funds (including money market funds), shares or stock options.  There is also no coverage for deposits invested in GICs with original maturity terms longer than 5 years.  Deposits to TFSAs and RESPs that aren't held in trust are not covered, nor is there coverage for funds lost due to fraudulent activity.

For more information, please visit the CDIC website.

CUDIC

The Credit Union Deposit Insurance Corporation (CUDIC) is a provincial government corporation that manages a deposit insurance fund for all deposits and non-equity shares of British Columbia credit unions.

All B.C. credit unions are covered and all deposits in B.C. credit unions are insured whether the depositor resides in B.C. or not.  This includes all money on deposit and money invested in non-equity shares with a B.C. credit union, and also includes foreign currencies and accrued interest, regardless of the length of the term to maturity.

What isn't covered? Credit union equity shares and investments such as mutual funds or RRSP equity plans are not covered by deposit insurance. 

For more information, please visit the CUDIC website. 

CIPF

The Canadian Investor Protection Fund (CIPF) is a not-for-profit organization that was set up by the Canadian investment industry to ensure the return of customers’ securities, cash balances and certain other property (within defined limits), if the member declares bankruptcy.

Investment dealers who obtain membership with either the Investment Industry Regulatory Organization of Canada (IIROC) or the Bourse de Montreal (self-regulatory organizations) are automatically given membership in the CIPF.  A customer can be an individual, a corporation, a partnership, an unincorporated syndicate, an unincorporated organization, a trust, a trustee, an executor, an administrator or other legal representative.

The coverage limit is $1-million for any combination of cash and securities and other property in your general account and an additional $1-million for each separate account.  Coverage extends to Registered Retirement Plans such as RRSPs, RRIFs, LIFs, LIRAs or LRSPs, LRIFs.  All separate accounts held with the same member are aggregated (RRSPs and spousal RRSPs held at the same member institution) for the purpose of CIPF coverage.  RESPs, testamentary trusts, personal holding corporations, partnerships and unincorporated associations or organizations are also considered separate accounts.

When are you not covered?  You are not covered for losses which do not result from the insolvency of a Member, such as, customers' losses that result from changing market values of securities, unsuitable investments, or the default of an issuer of securities.  You are not covered for losses where the customer has not filed a claim with CIPF or the trustee in bankruptcy of the insolvent member within 180 days of the date of insolvency.

For more information, please visit the CIPF website. 

Assuris

Assuris is a not-for-profit organization founded in 1990 to protect Canadian policy holders in the event that their life insurance company fails.  Funded by the life insurance industry, the organization will transfer a policy to ensure the continuity of benefits rather than paying cash.  It guarantees policyholders will retain at least 85% of their promised insurance benefits, and deposit type products are guaranteed up to $100,000 per insurer.

What does Assuris cover?  Individual Term Life or T100, individual universal and whole life, critical illness and disability, group insurance, annuities, long-term care, and segregated funds are all covered.  In the event of an insurer failure, Assuris will contact the policy holder.  The present value of Assuris' assessment capacity exceeds $4.5-billion, more than 15 times the cost of any insolvency incurred to date. 

For more information, please visit the Assuris website.

CUPSA