Sector: Credit Unions and Caisses Populaires
Current Rule: Minister approved Eligible Financial Contracts Rule
The Financial Services Regulatory Authority of Ontario (FSRA) has developed a rule under the Credit Unions and Caisses Populaires Act, 2020 which defines eligible financial contracts (EFCs) for the purposes of resolution orders.
FSRA’s EFC Rule was approved by the Minister of Finance on May 1, 2026.
Once effective the 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 order so they know which contracts qualify as EFCs.,This will enable credit unions to continue to undertake hedging activities to manage risks.
In addition, the Rule will contribute to maintaining and promoting stability of the credit union sector by supporting the proper functioning of FSRA CEO’s enhanced resolution powers.
The EFC Rule also aligns with the federal EFC Regulations (CDIC Act, SOR/2007-255) under the Canada Deposit Insurance Corporation Act, which will reduce inconsistencies for counterparties operating across jurisdictions.
The EFC Rule will take effect on July 1, 2026 when the relevant provisions under the CUCPA come into effect.
History of the Eligible Financial Contracts Rule
The following is a timeline of the Eligible Financial Contracts Rule process, and the related documents published as per legislative requirements under the FSRA Act.