GIC Brokers - What happens when cease business? | GIC discussions | Discussion forum

Venteicher said
Hello, Can people outline what happens if a small GIC Broker simply closes their business? If we commit to a 5 year GIC, we are concerned that a GIC broker might simply quit, or, go out of business? What happens then getting the funds back? What happens to records? There is a small GIC broker near us, been in business for over a quarter of a century. But as it is run only by one person, and so we wonder what might happen?  

Whenever we have invested in GICs through a broker, we have gotten written confirmation from the broker and, more importantly, directly from the financial institution itself, which is where your investment resides. As stated above, the broker is an agent working to bring the financial institution and the investor together. Also, the deposit insurance which accompanies many of our GIC investments is through the financial institutions, not the broker. If your broker should retire, keep in touch with the associated FIs to indicate that any interest and principal payments be forwarded directly to you in the situation where they may have been previously distributed via the broker.