CDIC differential-premium by-law updated: a previously pending amendment is now in force

Plain-language summary · AI-assisted · not legal advice

An amendment to the Canada Deposit Insurance Corporation Differential Premiums By-law that was previously listed as 'not yet in force' has now been brought into effect. The change narrows the reference used when assigning an examiner's rating score to a member institution: the by-law no longer looks back to scores assigned under the predecessor by-law's subsection 28(2), relying only on scores assigned under the current subsection. A related rule for amalgamated institutions has also been updated to reflect this consolidation. Member institutions subject to CDIC differential premium assessments—particularly those that were assessed under the old by-law before the current one came into force—should confirm with their compliance teams how their examiner's rating history will be treated in future premium calculations.

Who this affects: CDIC member deposit-taking institutions · bank and credit union compliance teams · financial institution risk and regulatory affairs leads