The AMF does not, however, guarantee all deposits received by registered institutions. These exceptions include:

  • Deposits with a term in excess of five years, unless they are repayable, at any time, on demand by the depositor, after five years from the date of the deposit;
  • Deposits made or payable in a currency other than Canadian;
  • Deposits held outside Québec or only payable outside Québec;
  • Funds used to acquire shares in a financial services cooperative;
  • Funds used to acquire shares in a mutual fund.

In addition, certain securities available at registered institutions are not guaranteed by the AMF. These include:

  • Equity sharesA company’s equity comprises share capital and retained earnings.

    Equity can be determined by subtracting a company’s liabilities from its assets. This is what belongs to the company’s owners once all liabilities have been deducted. 
    ;
  • Mortgage-backed securitiesA mortgage-backed security is a type of security tied to a mortgage.

    A mortgage loan (a loan secured by a mortgage) is a mortgage-backed security.  
    ;
  • BondsA bond is a security issued by governments and companies through which an investor lends money to the issuer.

    In general, the government or company promises to pay the investor interest at a fixed rate and at certain intervals (for example, 2% per year). Interest is normally paid twice a year. At maturity, the government or company pays back a predetermined amount that is called the face value. The face value is usually $1,000.

    There are several types of bonds:

    Stripped bond
    Real return bond
    Convertible bond
    Savings bond
    Retractable bond
    Unsecured bond
    Etc. 
    ;
  • DebenturesA debenture is a fixed-income investment, similar to bonds, except that debentures are generally not backed by specific assets. Also called unsecured bond. issued by governments, municipalities and corporations;
  • Treasury billsA treasury bill is a short-term investment guaranteed by a government. It reaches maturity within a year at most. At maturity, the government pays out a greater amount than the amount invested..

Example:

The AMF guarantees deposits with registered institutions in the event of the institution's insolvency. This deposit insurance offers a maximum guarantee of $100,000 per person, per registered institution.

The AMF does not, however, guarantee all deposits received by registered institutions. These exceptions include:

  • Deposits with a term in excess of five years, unless they are repayable, at any time, on demand by the depositor, after five years from the date of the deposit;
  • Deposits made or payable in a currency other than Canadian;
  • Deposits held outside Québec or only payable outside Québec;
  • Funds used to acquire shares in a financial services cooperative;
  • Funds used to acquire shares in a mutual fund.

In addition, certain securities available at registered institutions are not guaranteed by the AMF. These include:

  • Equity shares and mortgage-backed securities;
  • Bonds and debentures issued by governments, municipalities and corporations;
  • Treasury bills.

Example:
Paul made the following deposits with an institution registered with the AMF:

 Amounts deposited (including accrued interest)Amount guaranteed

Chequing accounts
(Canadian currency)

$2,000

$2,000

Five year term deposit
(Canadian currency)

 $10,000

$10,000

Subtotal

$12,000

 $12,000

Savings account
(U.S. currency)

$5,000

$0

Seven-year term deposit
(Canadian currency),
not repayable on demand
prior to maturity

$20,000

$0

Shares in mutual fund

$25,000

$0

Subtotal

$50,000

$0

Total

$62,000

$12,000