Strata Property Regulations Clarifies Investment Rules
READ THE ANNOUNCEMENT DIRECTLY FROM THE PROVINCE HERE: https://www2.gov.bc.ca/gov/content/housing-tenancy/strata-housing/legislation-and-changes/changes-to-legislation
The province has clarified the Strata Property Regulations with respect to certain investments made by strata corporations. The Regulations provide that savings and chequing accounts, term deposits, and guaranteed investment certificates (GICs)) must be in accounts at financial institutions that are a member of the Canada Deposit Insurance Corporation (CDIC) or the Credit Union Deposit Insurance Corporation of British Columbia (CUDIC), and the deposit must be eligible for deposit insurance. It was previously unclear for stratas who held funds that were guaranteed by CDIC whether they need spread their funds across a number of accounts with each balance not to exceed $100,000, since CDIC covers only the first $100,000 of any particular account.
The language in Regulation 6.11 is being amended to clarify that that a strata corporation is compliant with the Regulation in situations where only a portion of an account is eligible for deposit insurance. The amendment takes effect immediately.
To confirms, strata coroprations will be compliant if they are making permitted investments in either CDIC or CUDIC accounts.
The official Order in Council explaning the details can be found here: http://www.ccivancouver.ca/images/uploads/content/101-2019.pdf