The Financial Services Regulatory Authority of Ontario (FSRA) has submitted its Eligible Financial Contracts (EFC) Rule to the Minister of Finance for approval. If approved, the Rule would clarify which contracts qualify as EFCs for Ontario credit unions during a resolution and support the exercise of FSRA’s Chief Executive Officer’s enhanced resolution powers. The framework is intended to provide clarity and fairness for counterparties to credit unions in resolution, including by helping credit unions continue hedging activities to manage risks. It is also designed to align with the federal Eligible Financial Contract Regulations under the Canada Deposit Insurance Corporation Act (SOR/2007-255), reducing inconsistencies for counterparties operating across jurisdictions. The Rule now awaits Ministerial approval.
Financial Services Regulatory Authority of Ontario 2026-03-18
Financial Services Regulatory Authority of Ontario submits Eligible Financial Contracts Rule to the Minister of Finance for approval
The Financial Services Regulatory Authority of Ontario has submitted its Eligible Financial Contracts Rule to the Minister of Finance for approval. The Rule aims to clarify contract qualifications for Ontario credit unions during resolution and align with federal regulations, enhancing consistency for counterparties across jurisdictions.