Canada Gazette, Part I, Volume 155, Number 42: By-law Amending the Canada Deposit Insurance Corporation Differential Premiums By-law
October 16, 2021
Statutory authority
Canada Deposit Insurance Corporation Act
Sponsoring agency
Canada Deposit Insurance Corporation
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the By-law.)
Background
The Board of Directors of the Canada Deposit Insurance Corporation (CDIC) made the Canada Deposit Insurance Corporation Differential Premiums By-law (By-law) on March 3, 1999, pursuant to subsection 21(2) and paragraph 11(2)(g) of the Canada Deposit Insurance Corporation Act (CDIC Act). Subsection 21(2) of the CDIC Act authorizes the CDIC Board of Directors to make by-laws establishing a system of classifying member institutions into different categories, setting out the criteria or factors the CDIC will consider in classifying members into categories, establishing the procedures the CDIC will follow in classifying members, and fixing the amount of, or providing a manner of determining the amount of, the annual premium applicable to each category. The CDIC Board of Directors amended the By-law on January 12 and December 6, 2000, July 26, 2001, March 7, 2002, March 3, 2004, February 9 and April 15, 2005, February 8 and December 6, 2006, December 3, 2008, December 2, 2009, December 8, 2010, December 7, 2011, December 5, 2012, December 4, 2013, April 22, 2015, February 4 and December 7, 2016, December 6, 2017, December 5, 2018, March 6 and December 4, 2019, and December 9, 2020.
Issues
The CDIC annually reviews the By-law to confirm it is up to date and that the terminology referenced in the By-law aligns with the terminology that is used in regulatory filings requested by the Office of the Superintendent of Financial Institutions (OSFI). Such alignment will ensure that CDIC member institutions have clarity on the data requirements, and that CDIC receives the appropriate information from its member institutions. As a result, technical amendments are proposed in the By-law Amending the Canada Deposit Insurance Corporation Differential Premiums By-law (the Amending By-law).
The amendments align the By-law with OSFI’s Mortgage Loans Report.
Description
The table below provides more detail about the proposed amendments in the Amending By-law.
| Amending By-law section | By-law section | Explanation |
|---|---|---|
| Schedule 2, Part 2, Reporting Form item 8 | ||
| 1 | Single Family Dwelling Properties Mortgage Loans | Amendment modifies "Condominium units" to "Individual condominium units" |
One-for-one rule
The one-for-one rule does not apply, as there is no change in administrative costs to business.
Small business lens
The small business lens does not apply, as there are no costs to small business.
Alternatives
There are no available alternatives. The amendments must be done by way of a By-law amendment.
Consultation
As the amendments are technical in nature and do not affect the substantive elements of the By-law, only consultation by way of prepublication in the Canada Gazette, Part I, is necessary.
Rationale
The proposed Amending By-law will ensure the By-law remains technically up to date, would achieve the stated objective, and addresses the identified issues. The Amending By-law would not impose any additional regulatory costs or administrative burden on industry.
Implementation, compliance and enforcement, and service standards
The proposed Amending By-law would come into effect for the 2022 premium year. There are no compliance or enforcement issues.
Contact
Mueed Peerbhoy
Senior Legal Counsel
Canada Deposit Insurance Corporation
50 O’Connor Street, 17th Floor
Ottawa, Ontario
K1P 6L2
Telephone: 343‑572‑9516
Email: mpeerbhoy@cdic.ca
PROPOSED REGULATORY TEXT
Notice is given that the Board of Directors of the Canada Deposit Insurance Corporation, pursuant to subsection 21(2) footnote a of the Canada Deposit Insurance Corporation Act footnote b, proposes to make the annexed By-law Amending the Canada Deposit Insurance Corporation Differential Premiums By-law.
Interested persons may make representations concerning the proposed By-law within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Mueed Peerbhoy, Senior Legal Counsel, Canada Deposit Insurance Corporation, 50 O’Connor Street, 17th Floor, Ottawa, Ontario K1P 6L2 (email: mpeerbhoy@cdic.ca).
Ottawa, October 5, 2021
Leah Anderson
President and Chief Executive Officer
Canada Deposit Insurance Corporation
By-law Amending the Canada Deposit Insurance Corporation Differential Premiums By-law
Amendment
1 The second paragraph under the heading “Single Family Dwelling Properties Mortgage Loans” in item 8 of the Reporting Form set out in Part 2 of Schedule 2 to the Canada Deposit Insurance Corporation Differential Premiums By-law footnote 1 is replaced by the following:
Calculate the total mortgage loans of this type by adding together the amounts set out for “Single detached” and “Individual condominium units” in the columns “Insured” and “Uninsured” under “Gross Mortgage Loans Outstanding” in Section III of the Mortgage Loans Report, before deducting any allowance for expected credit losses.
Coming into Force
2 This By-law comes into force on the day on which it is registered.