Have your say: Public consultation on FSRA’s proposed Eligible Financial Contracts Rule
The Financial Services Regulatory Authority of Ontario (FSRA) is proposing an Eligible Financial Contracts (EFC) Rule. The purpose of the proposed Rule is to define EFCs for the purposes of s. 234.1 of the Credit Unions and Caisses Populaires Act, 2020 (CUCPA 2020), once it is proclaimed into force by the government.
Some of the benefits of FSRA’s proposed EFC Rule include:
- Providing 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.
- Harmonizing 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.
- Maintaining and promoting the stability of the credit union sector by supporting the proper functioning of FSRA's CEO’s enhanced resolution powers.
FSRA is inviting stakeholders to provide their input on the proposed Rule. The consultation period is now open and will close on December 19, 2025.
Learn more:
FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone.
Learn more at www.fsrao.ca.
Consultations