Loan and Trust Companies

Overview

The Commission administers the Loan and Trust Companies Act through regulation, oversight and licensing of loan and trust companies.

Loan companies accept deposits from the public and lend or invest those deposits. Trust companies act as a trustee, bailee, agent, executor, administrator, receiver, liquidator, assignee, guardian of a minor’s estate, or committee of a mentally incompetent person’s estate. If not restricted under the Loan and Trust Companies Act, a trust company can receive deposits from the public and then lend or invest those deposits.

There are two types of loan and trust companies: provincially incorporated companies and extra-provincial incorporated companies. Provincially incorporated loan and trust companies must be licensed with the Commission. Extra-provincial loan or trust company are incorporated under federal legislation. 

Consumer Protection

We license and regulate the incorporation of provincially incorporated companies under the Loan and Trust Companies Act. 

What we can do:

• license provincially incorporated loan and trust companies
• regulate the incorporation of loan and trust companies in New Brunswick
• monitor compliance with the Act 

What we cannot do:

• insure deposits at a federally incorporated bank or trust company. These are covered by the Credit Deposit Insurance Corporate (CDIC)