SASKATOON, SASKATCHEWAN--(Marketwire - Oct. 17, 2012) - Financial advisors play an essential role in providing Canadians with the information they need to make sound financial decisions, including ways to protect their hard-earned dollars, said Bryan P. Davies, Chair of the Canada Deposit Insurance Corporation (CDIC).
"This is why CDIC has partnered with Advocis, the Financial Advisors Association of Canada, in an effort to reach out to financial advisors and leverage the important relationships they have with their clients to promote awareness about deposit insurance," said Mr. Davies at CDIC's annual public meeting in Saskatoon, Saskatchewan.
CDIC's role in the financial system is changing.
In the wake of the global financial crisis, countries - including Canada - are developing plans for coping with the failure of large financial institutions, said CDIC President and CEO Michèle Bourque.
"CDIC is a part of this sea change," said Ms. Bourque.
"Today, global leaders understand we must be prepared to handle the failure of a very large bank in an orderly fashion that preserves confidence in the financial system but avoids imposing a cost on taxpayers."
Canada was well positioned to avoid the worst effects of the global financial crisis and no banks failed. However, CDIC understands that being prepared is imperative to preserving confidence in the Canadian financial system, Ms. Bourque told an audience of financial advisors and members of the public.
CDIC has created a feature called "Get the Full Picture" to help Canadians learn more about what is covered and what is not covered. It can be seen at: www.cdic.ca.
CDIC is a federal Crown corporation that provides deposit insurance against the loss of deposits with its member institutions in the event of a failure. Eligible deposits are automatically insured from $1 to $100,000 per insurable category at each member institution. CDIC members include Canadian banks, loan companies and trust companies that take deposits, as well as retail associations governed by the Cooperative Credit Associations Act that take deposits. CDIC is entirely funded by premiums assessed on its member institutions and does not receive federal tax dollars.