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Email this9:58 am
October 27, 2013
Offline
Mordko, I think that while that is your position and one you fervently believe, I am inclined not to accept your faith in you being connected to that trust. The account holder (you) is a step removed from any trust as Norman1 has explained patiently a number of times. I don't think you will find many members of financial forums agreeing with your position.
I don't see any financial risk in WS due to Power Corp's ownership but I do not consider deposits with WS as CDIC protected. At the same time, I do not know why anyone would have large amounts of cash sitting around in HISA type accounts anyway since a yield less than 4% is likely dead money on an after tax, real dollar basis.
10:30 am
April 27, 2017
Online
I don’t care about “any members” (which is obvious nonsense anyway because you are not a spokesperson for all forum members even if you prefer to cover your opinion by claiming “its everyone”).
Its not about beliefs. Its about the law. The key legal point is that CDIC insurance for trust deposits exists precisely because the beneficiaries have a legally recognized interest in the trust property. Applied to Wealthsimple:
- Wealthsimple is not a CDIC member.
- Wealthsimple (through its regulated entities) places client cash in trust at one or more CDIC member banks.
- If the trust records satisfy legal CDIC’s disclosure rules, you are treated as the beneficiary of those trust deposits for CDIC purposes.
So the statement: “The account holder is a step removed from any trust.” isn’t really meaningful at all. Yes, you are not the trustee. But beneficiaries are supposed to be one step removed—that’s the meaning of trust in law. Always helps to have some idea about the subject.
