FSRA’s new Eligible Financial Contracts Rule was submitted to the Minister of Finance for approval

The Financial Services Regulatory Authority of Ontario (FSRA) submitted its Eligible Financial Contracts (EFC) Rule to the Minister of Finance for approval. If approved, the new Rule will:

• provide clarity and fairness to counterparties (other financial institutions or entities in a financial transaction with a credit union) during a resolution, so they know which contracts qualify as EFCs. This would enable credit unions to continue to undertake hedging activities to manage risks.
• align with the federal Eligible Financial Contract Regulations (CDIC Act, SOR/2007-255) under the Canada Deposit Insurance Corporation Act, which reduces inconsistencies for counterparties operating across jurisdictions
• maintain and promote the stability of the credit union sector by supporting the proper functioning of FSRA's CEO’s enhanced resolution powers

Learn more

• Publication of Board-Approved Rule
• Proposed Eligible Financial Contracts Rule
• Summary Consultation Report on Proposed Eligible Financial Contracts Rule

FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone.

Learn more at fsrao.ca.