Regulatory Alerts2019-03-21
Notice on the Bail-In Power Under Section 40.50 of the Deposit Insurance Act
The Autorité des marchés financiers clarifies the application of the bail-in power under section 40.50 of Quebec’s Deposit Insurance Act for Desjardins Group, a domestic systemically important financial institution. Effective March 31, 2019, the Authority will convert prescribed unsecured debts into capital shares and execute an amalgamation operation to merge Desjardins entities into a single Québec savings company. This resolution framework ensures fair pro-rata treatment among creditors and capital holders, minimizes taxpayer exposure to losses, and triggers an indemnification plan for affected parties.
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