Canada Gazette, Part I, Volume 156, Number 44: By-law Amending the Canada Deposit Insurance Corporation Prescribed Practices Premium Surcharge By-law
October 29, 2022
Canada Deposit Insurance Corporation Act
Canada Deposit Insurance Corporation
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the By-law.)
Pursuant to paragraph 11(2)(g) and subsection 25.1(1) of the Canada Deposit Insurance Corporation Act, the Canada Deposit Insurance Corporation (CDIC) Board of Directors is authorized to prescribe such practices by a member institution that warrant a premium surcharge. The Canada Deposit Insurance Corporation Prescribed Practices Premium Surcharge By-law (the Premium Surcharge By-law) prescribes those practices. The Premium Surcharge By-law was made on January 26, 1994, and was amended on July 26, 2001, April 15, 2005, October 8, 2008, and December 8, 2010.
On March 2, 2022, CDIC made the Canada Deposit Insurance Corporation Eligible Financial Contracts By-law (EFC By-law). The EFC By-law prescribes the federal member institutions that must amend their eligible financial contracts (EFCs) so that the stay provisions in the Canada Deposit Corporation Act apply to those EFCs. The EFC By-law also provides a significant transition period.
Non-compliance with the EFC By-law creates a risk to an orderly resolution of the member institution, and to the Canadian financial system as a whole. To address that risk, the Canada Deposit Insurance Corporation proposes amending the Premium Surcharge By-law to add non-compliance with the EFC By-law as a practice that warrants a premium surcharge.
The main objective of the By-law Amending the Canada Deposit Insurance Corporation Prescribed Practices Premium Surcharge By-law (Amending By-law) is to add non-compliance with any of the provisions of the EFC By-law as practice that warrants a premium surcharge.
The following table provides more details about the Amending By-law.
|Amending By-law section||Explanation|
|1||Replaces the long title of the By-law with its short title|
|2||Repeals the short title as it is no longer necessary|
|3||Adds failing to comply with one or more provisions of the EFC By-law as a practice that warrants a premium surcharge|
The one-for-one rule does not apply to this proposal.
Small business lens
The small business lens does not apply to this proposal.
There are no available alternatives. The amendments must be done by way of a by-law.
CDIC consulted with industry participants and other stakeholders on EFCs over a 12-week period in 2019 and that input, where appropriate, was incorporated into the EFC By-law. Further consultation on the EFC By-law was sought through prepublication in the Canada Gazette, Part I. Therefore, no pre-consultation on this Amending By-law is necessary as this is a consequential amendment to address enforcement of the EFC By-law. Consultation is being sought through prepublication in the Canada Gazette, Part I.
The proposed Amending By-law will address the identified risk of non-compliance with the EFC By-law. The Amending By-law would not impose any additional regulatory costs or administrative burden on member institutions.
Implementation, compliance and enforcement, and service standards
The proposed Amending By-law would come into effect the day it is registered. There are no compliance or enforcement issues.
Senior Legal Counsel
Canada Deposit Insurance Corporation
50 O’Connor Street, 17th Floor
PROPOSED REGULATORY TEXT
Notice is given that the Board of Directors of the Canada Deposit Insurance Corporation proposes to make the annexed By-law Amending the Canada Deposit Insurance Corporation Prescribed Practices Premium Surcharge By-law under paragraph 11(2)(g)footnote a and subsection 25.1(1)footnote b of the Canada Deposit Insurance Corporation Act footnote c.
Interested persons may make representations concerning the proposed By-law within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Isabelle Lepage, Director, Legal Services, Canada Deposit Insurance Corporation, 50 O’Connor Street, 17th Floor, Ottawa, Ontario K1P 6L2 (email: firstname.lastname@example.org).
Ottawa, October 14, 2022
President and Chief Executive Officer
Canada Deposit Insurance Corporation
By-law Amending the Canada Deposit Insurance Corporation Prescribed Practices Premium Surcharge By-law
1 The long title of the Canada Deposit Insurance Corporation Prescribed Practices Premium Surcharge By-law footnote 1 is replaced by the following:
Canada Deposit Insurance Corporation Prescribed Practices Premium Surcharge By-law
2 Section 1 of the By-law and the heading before it are repealed.
3 Subsection 2(1) of the By-law is amended by striking out “or” at the end of paragraph (e), by adding “or” at the end of paragraph (f) and by adding the following after paragraph (f):
- (g) failing to comply with one or more provisions of the Canada Deposit Insurance Corporation Eligible Financial Contracts By-law.
Coming into Force
4 This By-law comes into force on the day on which it is registered.
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