Deposit insurance (FAQ)
Q. Are my accounts well protected at the Caisse?
A. Stability and dependability are two qualities every financial institution must have. On top of the rules and regulation that govern your Caisses operations, your accounts are covered up to 100 000 $ and your registered accounts are covered with unlimited deposit insurance provided by the Deposit insurance corporation of Ontario (DICO).
Q. What makes my Caisse so secure?
A. First of all, there is the fact that your Caisse is a cooperative. As such, it belongs to its members, i.e. to you and all the other members of the caisse. The people that you elect to its Board of Directors are responsible for managing caisse business in the interests of the members. They must apply sound and prudent management practices, and adhere to a set of ethical rules and administrative standards. A part of their work is to see to it that the caisse has all the necessary insurance for fire, theft, fraud and any other possible danger. In addition to the Board of Directors, the General Meeting elects an Audit Committee which acts on behalf of the members to verify proper application of all rules and standards. Finally, as part of a vast cooperative network, the Caisse can rely on L’Alliance des caisses populaires for support in meeting member needs both competitively and securely.
Q. How do I know my Caisse is in good financial standing?
A. The law requires regular inspections and annually audit the Caisses, in order to protect member assets and support the Caisse officers in the execution of their functions. This is the responsibility of the Deposit Insurance Corporation of Ontario, which evaluates whether the Caisses are managing their business according to sound and prudent management practices, while respecting the laws, standards and ethical rules in effect. In addition, the inspectors issue an opinion in accordance with recognized auditing standards.
Q. What happens if there are major problems or losses?
A. Each Caisse has a reserve fund that receives a portion of the surplus earnings for each year. This reserve fund constitutes one form of guarantee for depositors. Being a member of L’Alliance des caisses populaires de l’Ontario provides each Caisse member with additional protection. They can count on the solidarity of the affiliated caisses populaires to meet their capital levels. The Caisses also benefits from additional protection for its members deposits through the Deposit Insurance Corporation of Ontario.
Q. Does the Ontario government have any responsibility for protecting my savings?
A. The Ontario government does in fact have this responsibility, which is carried out by the Deposit Insurance Corporation of Ontario (DICO). The main purpose of this corporation is to ensure that financial institutions and other players in the sector follow the appropriate regulations respecting solvency, in accordance with the relevant legal requirements, which are intended to protect the interests of financial services users.
Q. Is my Caisse registered with the Deposit Insurance Corporation of Ontario?
A. All credit unions and caisses popuolaires that solicit or receive deposits from the general public in Ontario are required to register with the Deposit Insurance Corporation of Ontario. Each Caisse is registered independently. This means that in each of the caisses, deposits are guaranteed for up to $100,000 per person.
In Ontario, deposits in registered savings plans are insured for their total amount. Other deposits in Canadian dollars are insured up to $100,000.
Q. What is deposit insurance?
A. All Canadian dollar deposits you make at your Caisse are insured up to $100,000, in accordance with the rules and regulations of the Deposit Insurance Corporation of Ontario. Deposits in registered savings plans are insured for their total amount. Other deposits in Canadian dollars are insured up to $100,000.