Proposed amendments to the
Canada Deposit Insurance Corporation
Act(CDIC Act) introduced in
Bill C-15 enhance the resolution powers of
CDIC and are intended to make Canada a Protocol-Eligible Regime
under the ISDA 2015 Universal Stay Protocol. I am happily
contemplating updating all of our capital netting opinions in light
of the proposed changes, some of which affect the operation of the
Act's eligible financial contracts safe-harbour (EFC
exemption). Those of you who read capital netting opinions for
pleasure (or because you must in order to keep your jobs) will be
most interested in the following features of the Bill.
CDIC Can Make Broader Range of Orders
The CDIC Act restructuring regime allows CDIC to make a broader
range of orders under s.39.13 with respect to an insolvent member
institution (an Order), including, in the case of domestic
systemically important banks, an order to convert its prescribed
shares and liabilities to common shares (see the
