Updates To The Bail-In Regime: Introduction Of Bill C-15

In April, we published a bulletin describing the federal Liberal government's 2016 budget proposal to introduce a bank bail-in regime. Subsequently, the government has taken the proposal one step further by introducing Bill C-15 entitled An Act to implement certain provisions of the budget tabled in Parliament on March 22, 2016 and other measures to, among other things, implement the proposed regime.

Bail-in regimes shift some of the responsibility for restoring a failing bank to financial health from taxpayers to shareholders and bondholders by converting the bank's eligible long-term debt into common shares to recapitalize the bank.

Highlights of the Bail-in Regime in Bill C-15