By-law Amending the Canada Deposit Insurance Corporation Deposit Insurance Policy By-law (SOR/2026-81) updates the administrative framework governing the policy by-law of Canada Deposit Insurance Corporation, which prescribes the form and provisions of deposit insurance coverage in Canada. The amendment is made by the Board of Directors under authority provided by the Canada Deposit Insurance Corporation Act, specifically paragraph 11(2)(g) and subsection 18(3).

The core amendment replaces subsection 24(4) of the schedule to the Policy By-law to clarify conditions under which member institutions may retain certain records outside Canada. Previously, the provision referenced foreign banking entities in relation to Schedule IV of the Bank Act. The updated wording maintains the substance of the exemption but modernizes the reference to ensure alignment with recent legislative amendments affecting Schedule IV. Under the revised subsection, a member institution that is a subsidiary of either a foreign bank, as defined in section 2 of the Bank Act and incorporated or formed in a jurisdiction listed in Schedule IV, or a regulated foreign entity as defined under the same Act, may retain specified records outside Canada despite general requirements that such records be maintained domestically.

It also clarifies that eligible subsidiaries include those of foreign banks operating in jurisdictions recognized under Schedule IV and regulated foreign entities, ensuring consistency with updated trade and accession provisions. The amendment is consequential to legislative changes introduced by An Act to implement the Protocol on the Accession of the United Kingdom of Great Britain and Northern Ireland to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which modified Schedule IV of the Bank Act to reflect new treaty accession rules. The by-law ensures that references within the deposit insurance policy remain accurate and legally consistent following those statutory changes. Without this update, inconsistencies could arise between the Policy By-law and the underlying statutory framework governing foreign bank subsidiaries and record retention requirements.

More broadly, the amendment demonstrates the ongoing effort of federal financial regulators to keep deposit insurance policy instruments synchronized with evolving trade agreements and banking law architecture. By ensuring that definitional references remain current, the update reduces interpretive uncertainty for compliance teams and legal counsel within member institutions. It also intended to support consistent application of record retention rules across domestic and foreign subsidiaries operating within the CDIC framework, reinforcing system stability and regulatory predictability across Canada’s deposit insurance regime overall system.

Canada (81/2026) May 26, 2026
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