The CDIC and IIROC have signed a memorandum of understanding that will help them cooperate when a CDIC member institution or a connected IIROC-regulated firm encounters serious financial difficulties.
Under the MOU, CDIC and IIROC have agreed to strengthen their consultation, cooperation and exchange of information in connection with the crisis management and resolution of a CDIC member institution or connected investment firm.
“Investors across Canada will benefit from the early warning, co-operation and co-ordinated efforts of two organizations working together to plan and oversee the orderly resolution of a financial emergency at an investment firm,” said Andrew J. Kriegler, president and CEO of IIROC.
“In order to protect the deposits of Canadians in a rapidly evolving financial sector, we need to have a full picture of the business of our member institutions,” said Michèle Bourque, President and CEO of CDIC. “In the unlikely event of a failure, this agreement will ensure that we are able to act quickly and effectively to co-ordinate the orderly resolution of a financial firm.”
This MoU follows similar arrangements CDIC has established with other leading deposit insurers and financial regulators to improve cooperation, information sharing, and resolution planning. CDIC will continue to work with domestic and international counterparts to strengthen relationships and coordination for deposit protection.
IIROC continues to pursue agreements to improve the consistency and effectiveness of the regulatory system that protects Canadian investors. Most recently, IIROC announced an MOU with the Insurance Council of British Columbia in June. It previously announced agreements with the Financial Services Commission of Ontario in March and the Chambre de la sécurité financière in Quebec in November 2015. IIROC has more than a dozen agreements with Canadian and international regulatory organizations.