Consultation on FSRA’s proposed Eligible Financial Contracts Rule

Thank you for providing your feedback on FSRA’s consultation on FSRA’s proposed Eligible Financial Contracts Rule.

The request for submissions is now closed.

We appreciate the comments and questions received to date and look forward to sharing with you the final Guidance. Stay up to date on Guidance releases on our newsroom. Follow us on LinkedIn and subscribe to our mailing list for quick updates.

The Financial Services Regulatory Authority of Ontario (FSRA) is inviting stakeholders to provide their input on the proposed Eligible Financial Contracts Rule, which defines Eligible Financial Contracts (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.

FSRA’s proposed EFC 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.
• Harmonize 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.

The consultation period is now open and will close on December 19, 2025.

Learn more:

• Notice of Rule
• Proposed Eligible Financial Contracts Rule