How do I become a member of RDBA if I am a Deposit Broker?
To become a member of RDBA, you must have an agency contract with at least one of our Financial Institution (FI) members for soliciting client-name deposits. You can either do this directly as an RDBA Broker member, or indirectly as an RDBA affiliate member of an existing RDBA Full Broker member.
Who Needs To Become A Member?
Anyone soliciting ‘client name’ GICs from any of our financial institution members is required to hold an RDBA membership and complete the RDBA AML Training (See sidebar). According to the RDBA rules and regulations, “Solicit” or “Soliciting” means activities that include, but are not limited to:
- Providing an explanation of the features and characteristics of a Deposit Product to a client;
- Receiving an Application or instructions with regard to a Deposit Product from a Depositor;
- Remitting an Application or a Related Payment to a FI Member; or
- Validating a Depositor’s identification and other activities required to comply with the anti-money laundering and anti-terrorist financing laws, that are intended or can be reasonably seen as intending to result in the purchase or acquisition of a Deposit Product;
Do Financial Institutions (FI) need to register with RDBA and what is the process?
Over 20 FIs are already RDBA members, including chartered and regional banks with broker channels, trust companies, and many credit unions who rely exclusively on the broker channel for deposit business.
FIs who choose to participate and become members can access the registry system and participate in the unified compliance process. FI members share in the cost of a standardized Anti-Money Laundering and Terrorist Financing Training (AML) and compliance program.
What is the difference between an Affilate Membership and Deposit Broker Membership?
An RDBA Affiliate member is not party to a contract with an RDBA member FI. Instead, they are party only to a contract with RDBA Deposit Broker members to solicit FI deposits for the FIs with which that RDBA Deposit Broker member has agency contracts. A Deposit Broker member is party to a contract directly with a member FI.
Deposit Broker members have the right to vote and be elected as an RDBA Board Director or Officer while Affiliate members cannot vote.
Anti-Money Laundering (AML) Training
Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) and FINTRAC guidelines, Financial Institutions in Canada are required to ensure that their brokers and agents complete Anti-Money Laundering (AML) training. The RDBA provides this training and test through our secure members website to all of our broker and affiliate members on an annual basis.
Our training is reviewed and revised on a regular basis and is put in place before any new regulations come into force. We track our members’ completion of the test and report this back to the member financial institutions with which they do business. This way, our FI members are able to provide this information to The Office of the Superintendent of Financial Institutions (OSFI) to stay compliant. We also provide electronic reports to our large brokers (full broker members) on their affiliates’ test completion and membership status.
Canadian Deposits Course
RDBA developed The Canadian Deposits Course to ensure students have solid industry knowledge with an excellent understanding of their ethical and professional responsibilities. This course is open to anyone who wants to learn about the Canadian deposits industry and it is voluntary for members. Members in good standing who complete this comprehensive course are eligible for CE credits and earn a designation.
RDBA Offers A Comprehensive Course On The Deposits Industry
RDBA is committed to maintaining a safe and informed market place for investors by encouraging a high standard of business practice and education of its members. RDBA developed The Canadian Deposits Course to ensure students have solid industry knowledge with an excellent understanding of their ethical and professional responsibilities.
Who Should Enroll?
Enroll in the Canadian Deposit Course if you are:
- An existing deposit broker or financial professional
- An advisor who offers deposit-based products as part of your client investment portfolios
- An employee of a financial services firm who want to gain greater expertise
- A financial institution employee serving deposit intermediaries
What Will You Learn?
- Consumer Insurance Protection
- Deposit Products and Investment Strategies
- Registered Investment Plans
- Money Laundering and Privacy Requirements
- Estate and Tax Basics
- Managing an Effective Brokerage
Earn Up To 30 CE Credits
Earn up to 30 industry continuing education credits with:
Earn Your Professional RDB Or RDA Designation
RDBA members who complete this course and who maintain a membership in good standing earn an industry designation of:
- Registered Deposit Broker (RDB) – for Deposit Broker members
- Registered Deposit Agent (RDA) – for Deposit Broker Affiliate members
- Certified Deposit Specialist (CDS) – for Financial Institution employees
- RDBA Member Rate: $250
- Non-Member Rate: $350
An online PDF version of the textbook is included in the course fee and students are required to complete an online exam to successfully complete the course.
RDBA members can contact our office for the details on how to receive the member discount.
Register for the Canadian Deposits Course
Membership Categories And Fees
Membership fees are for January to December and entitle you to take the RDBA AML Training and access RDBA forms and resources.
- If you are selling through another broker, the fee is $125.00 + HST/GST for an Affiliate Membership
- If you hold direct agency contracts with one and only one of our Member Institutions, the fee is $125.00 + HST/GST for a Limited Broker Membership
- If you hold direct agency contracts with more than one of our Member Institutions, the fee is $750.00 + HST/GST for a Full Broker Membership
- If you hold direct agency contracts with only one of our Member Institutions and you sell through another Broker, the fee is $750.00 + HST/GST for a Full Broker Membership
Requirements For Becoming A Broker Member
If you are a financial professional who already deals with any of our Financial Institution (FI) members, you can inquire with them about getting an agency contract for client-name deposits. An FI member may also recommend an RDBA Broker they already deal with who might take you on as an affiliate member.
If you or your company holds direct agency contracts with any of our Financial Institution Members then you will need to fulfill certain requirements:
- The applicant must submit to the RDBA three letters of character references from at least three sources, two of whom must be either be a trust company, credit union or bank; or from three RDBA financial institution members with whom you have contracts. Please send these to: RDBA, 55 Cedar Pointe Drive, Suite 614, Barrie, Ontario L4N 5R7 Fax #: (705) 730-0477 Email: email@example.com
- Once you have been approved as a Broker Member, you must complete the annual RDBA Broker Compliance Questionnaire which is reported to any of our Financial Institution Members with whom you have direct agency contracts.
You and/or your company will receive a visit at your offices from an RDBA Auditor. You will be given advance notice of this visit.