For Deposit Brokers

Deposit products fulfill many client objectives. They enhance returns by augmenting or replacing fixed investments in a balanced portfolio and can be used to generate income or grow capital. Deposit products can be structured to ensure that principal and interest are guaranteed by the Canada Deposit Insurance Corporation or a provincial insurance program.

Entering the deposit industry is straightforward. If you are a financial professional who already deals with a RDBA Financial Institution member, you can ask them about establishing an agency contract for client name deposits. The RDBA can connect you with Financial Institutions that are accepting new Deposit Brokers.

You may also decide to offer deposit instruments as a Deposit Broker Affiliate. In this capacity you solicit deposits on behalf of one or more Deposit Brokers and have written contractual relationships with them. The RDBA can provide applicants with the names of Deposit Brokers who are accepting new Affiliates, and this information may be provided by a Financial Institution member as well. You can also be a full Deposit Broker member if you have one agency contract with a Financial Institution and process GIC transactions through a Deposit Broker.

If you or your company hold direct agency contracts with any RDBA Financial Institution members, we ask that you complete the following requirements.

After completing the online application, the applicant must submit to the RDBA character references from at least three sources, two of which must be either a trust company, credit union or bank. These can also be provided by three RDBA Financial Institution members with whom you have agency contracts. Please send these to:

RDBA
92 Caplan Avenue, Suite 243
Barrie, Ontario, L4N 9J2
Fax: (705) 730-0477
Email: headoffice@rdba.ca

Each new member is required to complete the RDBA onboarding training and test and must successfully complete our AML training

As a requirement for all soliciting members, an independent third party will conduct a criminal background check on behalf of the RDBA.

Once approved, each new Deposit Broker member must complete the annual RDBA Broker Compliance Questionnaire. The results of this questionnaire are available to each Financial Institution member with whom the Deposit Broker has direct agency contracts.

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 regarding 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;

An RDBA Affiliate member is not party to a contract with an RDBA member FI. Instead, they are only party 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.

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 who complete this comprehensive course are eligible for CE credits and earn a designation.

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 wants to gain greater expertise
• A financial institution employee serving deposit intermediaries

What will you learn?

• Consumer deposit insurance protection
• Deposit products and investment strategies
• Registered investment plans
• Anti-money laundering and privacy requirements
• Estate and tax basics
• Managing an effective brokerage

Earn Your Professional RDB, RDA or CDS 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

Course Fees:

• 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 details on how to receive the member discount.

Register for the Canadian Deposits Course

• If you are selling through another broker, the fee is $250.00 + HST/GST for a 12-month Affiliate Membership
• If you hold direct agency contracts with one and only one of our Member Institutions, the fee is $250.00 + HST/GST for a 12-month Limited Broker Membership
• If you hold direct agency contracts with more than one of our Member Institutions, the fee is $950.00 + HST/GST for a 12-month 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 $950.00 + HST/GST for a 12-month Full Broker Membership

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.

Each soliciting member is required to complete the RDBA onboarding training
and must successfully complete our AML training.

One of the requirements for all soliciting members is that an independent third party will conduct a criminal background check on behalf of RDBA.

Many FIs are already RDBA members, including chartered and regional banks with broker channels, trust, and mortgage companies and many credit unions who rely exclusively on the broker channel for deposit business.

FIs who become members have access to the results of our detailed compliance oversight process.

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 the secure members website to all 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 to the member financial institutions with which they do business. We also provide electronic reports to our large brokers (Full Broker members) on their Affiliates’ test completion and membership status.

This program is eligible for 30 Continuing Education (CE) credits as follows:

The Institute

• 30 CE credits including 1 Ethics credit

In the opinion of the Institute, the content of the course aligns with the FPSC’s CE requirements for the category of “Professional Responsibility” for 1 CE credit, “Practice Management” for 2 CE credits, and “Financial Planning” for 27 CE credits. However, it remains the responsibility of the CFP Professional to confirm this.

Note:

Advisors are responsible for ensuring that CE credits are applicable to the individual regulatory, licensing, designation, and professional membership bodies under which they are governed.

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, 92 Caplan Avenue, Suite 243, Barrie, Ontario, L4N 9J2 Fax #: (705) 730-0477 Email: headoffice@rdba.ca
• Each new member is required to complete the RDBA onboarding training and test
• As a requirement for all soliciting members, an independent third party will conduct a criminal background check on behalf of RDBA
• 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.