CDIC protection for WS Cash accounts increased to 500K | Page 7 | Wealthsimple | Discussion forum

Please consider registering
guest

sp_LogInOut Log In sp_Registration Register

Register | Lost password?
Advanced Search

— Forum Scope —




— Match —





— Forum Options —





Minimum search word length is 3 characters - maximum search word length is 84 characters

No permission to create posts
sp_Feed Topic RSS sp_TopicIcon
CDIC protection for WS Cash accounts increased to 500K
April 15, 2024
11:37 pm
Loonie
Member
Members
Forum Posts: 9290
Member Since:
October 21, 2013
sp_UserOfflineSmall Offline
121sp_Permalink sp_Print

So, do we know if WS discloses the beneficiaries of its trust accounts to CDIC or to the banks in question? If they do, how could we be sure and why can't they tell us too?

If RBC or whichever bank only has to insure 100,000 out of a billion, there will be an increased profit margin for them.

April 16, 2024
5:00 am
mordko
Member
Members
Forum Posts: 874
Member Since:
April 27, 2017
sp_UserOfflineSmall Offline

- They won’t tell us because its none of our business (and most of us don’t care). The auditors will know.
- RBC or whichever bank has to insure the exact same amount. Assuming WS clients keep cash balance under $500K, hypothetical “RBC” has to insure 100% of it under CDIC.

April 16, 2024
6:04 am
Bill
Member
Members
Forum Posts: 3956
Member Since:
September 11, 2013
sp_UserOfflineSmall Offline
123sp_Permalink sp_Print

The formal trusts I'm involved with regularly are asked to update the list of disclosed beneficiaries by the institutions where the trusts have accounts, exactly for the purpose of CDIC coverage per beneficiary. (I usually ignore the requests as CDIC coverage is not an issue with those trusts.)

April 16, 2024
7:25 am
Norman1
Member
Members
Forum Posts: 6860
Member Since:
April 6, 2013
sp_UserOfflineSmall Offline

It is not part of the account agreement. But, Wealthsimple says the necessary beneficiary information is disclosed to the banks in their response to a question in Understand how CDIC coverage works in your Cash account:

How are my funds split between the partner banks that you are using?

The funds are split to maximize your eligible CDIC coverage.

Note: We work with several tier-1, CDIC-member, regulated Canadian financial institutions to hold your deposits in trust. CDIC’s coverage limit applies separately to each deposit category at each member institution, so even if you bank with our bank partners, you’ll have CDIC coverage in both places. We provide our banking partners with the relevant reporting information concerning beneficiaries in line with our CDIC reporting obligations. Beneficiary information is based on account holder information so please make sure your information is up to date. You can learn more about how CDIC coverage works on their website.

Wealthsimple also says that there would be no overlap with the CDIC coverage of accounts a Wealthsimple Cash Account holder may directly have with the same banks. That's consistent with those trust accounts being in Wealthsimple Payments Inc.'s name and not in the name of any of the Wealthsimple Cash Account holders.

No way for Wealthsimple Cash Account holders to verify on their own. Even if the bank were known, a disclosed beneficiary of a bank account is not entitled to info about the bank account from the bank. The beneficiary needs to go through the trustee who is the bank account's holder.

April 16, 2024
7:56 am
mordko
Member
Members
Forum Posts: 874
Member Since:
April 27, 2017
sp_UserOfflineSmall Offline
125sp_Permalink sp_Print

WS should be well positioned to rip the benefits of Open Banking… I assume.

https://www.theglobeandmail.com/business/article-what-is-open-banking-canada/

No permission to create posts

Please write your comments in the forum.