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Email this7:59 am
June 9, 2022
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I've seen a few ads from them and their website - https://gicwealth.ca/ - says they are covered by CDIC but when I check if GIC Wealth Management is covered on the CDIC website - https://www.cdic.ca/depositors.....s-covered/ - they are not found.
I'm wondering if this is a scam or if they have a parent company that is covered by CDIC insurance.
8:09 am
February 7, 2019
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gicbits said
I've seen a few ads from them and their website - https://gicwealth.ca/ - says they are covered by CDIC but when I check if GIC Wealth Management is covered on the CDIC website - https://www.cdic.ca/depositors.....s-covered/ - they are not found.I'm wondering if this is a scam or if they have a parent company that is covered by CDIC insurance.
Legit? Yes and they are included in the GIC Table @ https://www.highinterestsaving.....gic-rates/, at the bottom in the Brokers section.
I believe that as brokers, they "sell" GIC's from FIs that are CDIC (<=$100k) or FSRA (<=$250k) covered.
| CGO |
8:13 am
April 9, 2019
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Yes they are legit and good, to my opinion. I used their services for years (not the last 2 years though since the rates got low) - never had problems. CDIC coverage - they are not covered and do not need to because they do not issue their own GICs. They re-sell others' products. The GICs they sell are covered.
8:22 am
February 7, 2019
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Which leads me the conclusion I reached on broker GICs ...
If I own $100k of Tangerine GICs and buy $100k of GICs from GIC Wealth Mgmt which happen to be Tangerine GICs, I'm only CDIC covered for half my Tangerine GICs.
Correct?
| CGO |
8:22 am
January 12, 2019
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.
'GIC Wealth Management' is not a registered financial institution ... they're only Brokers of GICs, issued by the financial institutions they broker for.
Those financial institutions they broker for, have CDIC coverage.
- Dean
" Live Long, Healthy ... And Prosper ! "
9:06 am
April 6, 2013
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GIC Wealth Management is a broker of client name deposits. They don't hold the GIC's. The GIC's are in the client's name and not in GIC Wealth Management's name. Cheques are made out to the GIC issuer and not to GIC Wealth Management.
That's different from brokers of nominee name deposits, like Scotia iTRADE and BMO InvestorLine. Those brokers hold the GIC's as the GIC's are in the broker's name, not in the client's name. Those brokers need insurance, like CIPF, to cover losses in case the broker fails.
9:11 am
June 9, 2022
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Thanks for all the information, everyone.
9:23 am
February 7, 2019
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Norman1 said
GIC Wealth Management is a broker of client name deposits. They don't hold the GIC's. The GIC's are in the client's name and not in GIC Wealth Management's name. Cheques are made out to the GIC issuer and not to GIC Wealth Management.That's different from brokers of nominee name deposits, like Scotia iTRADE and BMO InvestorLine. Those brokers hold the GIC's as the GIC's are in the broker's name, not in the client's name. Those brokers need insurance, like CIPF, to cover losses in case the broker fails.
Thanks Norman. So, for clarity...
1. If I own a $100k TNG GIC an buy a $100k TNG GIC via GIC Wealth Mgmt, I have $100k CDIC Coverage on $200k?
2. If I own a $100k TNG GIC an buy a $100k TNG GIC via SB iTrade, I have $100k CDIC Coverage on my TNG $100k and $100k CIPF coverage on SB's TNG 100k?
| CGO |
9:51 am
April 6, 2013
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That's correct.
Going through a client name deposit broker doesn't multiply CDIC coverage. The GIC's bought directly and via client name deposit brokers are all registered in the same client name at the issuer.
CIPF insurance covers any shrinkage of the GIC at Scotia iTRADE. There is still CDIC coverage for the nominee name GIC held by Scotia iTRADE for failure of the issuer to honor the GIC.
There is usually different branding for the direct-to-consumer GIC's. So, one won't be able to purchase a Tangerine-branded GIC through GIC Wealth or Scotia iTRADE. Instead, one would purchase an Oaken GIC, issued by Home Trust, directly and a Home Trust GIC via GIC Wealth or Scotia iTRADE.
9:53 am
February 7, 2019
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Norman1 said
That's correct.Going through a client name deposit broker doesn't multiply CDIC coverage. The GIC's bought directly and via client name deposit brokers are all registered in the same client name at the issuer.
CIPF insurance covers any shrinkage of the GIC at Scotia iTRADE. There is still CDIC coverage for the nominee name GIC held by Scotia iTRADE for failure of the issuer to honor the GIC.
Thanks Norman...
| CGO |
10:27 am
January 12, 2019
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" Live Long, Healthy ... And Prosper ! "
11:18 am
September 7, 2018
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Just so I am clear on this dialogue, are u saying I could buy 100K ABC Bank GIC directly from ABC bank plus 100K ABC Bank GIC bought via itrade and sitting in my itrade acct and CDIC will cover my GIC bought directly from ABC Bank and CIPF will cover the 100K bought via itrade and sitting in my itrade acct?
11:42 am
October 27, 2013
Online
Specifics not quite that way. The $100k 'value' of the GIC at the brokerage (e.g. Scotia iTrade) is backed by CDIC because it is in nominee name at the brokerage.
What CIPF does is insure against the partial or entire loss of the GIC holding itself from the account, e.g. the brokerage going insolvent and the asset itself disappearing, and/or malfeasance such as theft of the GIC from the account. It does not insure the 'value' of the GIC, just as CIPF does not insure the 'value' of a stock holding.
Example of a stock holding: Say you hold 200 shares of stock X in your brokerage account, the value of which varies daily in the stock market. What CIPF does insure your holding of those 200 shares in event some insider stole some, or all, of them or they had been inappropriately used as collateral for the brokerage's debt in insolvency.
