Deposit-Type Instruments Regulations — 3
Information to be disclosed 3 (1) At or before the time an institution enters into an agreement with a person for the issuance of a deposit-type instrument, the institution must disclose the following information to the person, orally and in writing: (a) the annual rate of interest in respect of the instrument, if the rate of interest is fixed; (b) if the rate of interest is variable, (i) how the rate of interest is determined, (ii) the prime lending rate or the interest rate benchmark, as the case may be, that is used for the calculation of the rate of interest, (iii) the prime lending rate or the interest rate benchmark in effect when the information is disclosed, and (iv) how the person may obtain the rate of interest from the institution during the investment period; (c) any charges in respect of the instrument; (d) when interest is calculated and paid under the instrument; (e) the dates on which the investment period specified in the instrument begins and ends; (f) whether the instrument may be redeemed prior to maturity and, if so, the effect of early redemption on the interest payable; (g) if the agreement provides that the issuance of the instrument may be cancelled within a specified period, the duration of the period; (h) if the agreement provides that after the maturity of the instrument a new instrument may be issued to the person without a further agreement being entered into, the fact that a new instrument may be issued without a further agreement, the conditions under which a new instrument may be issued without a further agreement and (i) whether its rate of interest is fixed or variable, and the rate or method for determining the rate, (ii) its investment period, and (iii) any charges related to its issuance or the cancellation of its issuance; and (i) if the instrument relates to a deposit that is not eligible for deposit insurance coverage by the Canada Deposit Insurance Corporation, the fact that it is not eligible. Exception: agreements entered into by telephone (2) In the case of an agreement for the issuance of a deposit-type instrument that is entered into by telephone, the institution is not required to provide the disclosure referred to in subsection (1) in writing on or before entering into the agreement. However, the institution must provide the written disclosure after entering into the agreement. Exception: agreements entered into by electronic means or by mail (3) In the case of an agreement for the issuance of a deposit-type instrument that is entered into by electronic means or by mail, the institution is not required to provide the disclosure referred to in subsection (1) orally. However, before entering into the agreement the institution must disclose, in addition to the written disclosure referred to in subsection (1), the telephone number of a person who is knowledgeable about the terms and conditions of the instrument. New instruments issued without further agreement (4) If a new instrument is issued to a person pursuant to an agreement referred to in paragraph (1)(h), the institution must disclose in writing the information concerning the instrument referred to in subsection (1) to the person without delay after the instrument is issued. SOR/2016-142, s. 7(F) SOR/2020-47, s. 17 SOR/2024-212, s. 6 SOR/2024-212, s. 7(E)