Advisories
Advisory 1
Disclosure Of Information On Deposit Insurance
Coverage
A credit union or caisse populaire shall not use
any form of advertising to indicate that its members'
deposits are insured without first submitting a
description of the advertisement and obtaining the
prior written approval of the Credit Union Deposit
Insurance Corporation (CUDIC) as required by Section
170(1) of the Credit Union Act and CUDIC By-Laws.
All credit unions and caisse populaires in Nova
Scotia will be supplied with initial copies of a
Credit Union Deposit Insurance Corporation brochure
containing detailed information on deposit insurance
coverage. Credit unions and caisse populaires should
make these brochures available to their members.
In addition, credit unions and caisse populaires
may include information on deposit insurance in
a newsletter to their members, or in their annual
report. In this regard, the prescribed wording of
such communication to members is as follows:
"Members' deposits are insured by the Nova Scotia
Credit Union Deposit Insurance Corporation (CUDIC).
Under this insurance plan, each member is insured
to a maximum of $250,000 for the combined principal
and interest of that member's total deposits. However,
funds held under an RRSP or other registered investment
vehicle approved by Revenue Canada are not included
in that combined total, and such amounts are separately
insured up to $250,000 for each registered plan
contract of the member. Joint accounts and trust
accounts are also insured separately to $250,000.
In addition, each person in a trust account is insured
separately from the others. Equity shares however
are not covered by deposit insurance.
For complete information on deposit insurance coverage,
please refer to a CUDIC brochure entitled "How Your
Deposits are Insured". A copy of this brochure may
be obtained at the credit union's office."
If a credit union or caisse populaire uses precisely
the above wording when communicating information
on deposit insurance coverage in their newsletters,
it is not necessary to submit a description of this
advertisement to CUDIC, so as to obtain written
approval for its use.
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