CDIC allows certain records kept outside Canada

Summary#

This is an update to the Canada Deposit Insurance Corporation Deposit Insurance Policy By-law made by the Canada Deposit Insurance Corporation. It tweaks the wording so that certain member institutions can keep some records outside Canada when the country of their parent bank is one listed in Schedule IV to the Bank Act. The by-law was registered as SOR/2026-81 on May 11, 2026 and comes into force tied to the coming-into-force of 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 (see "Why it matters" below).

What it does#

• Replaces subsection 24(4) of the Canada Deposit Insurance Corporation Deposit Insurance Policy By-law with clearer wording.
• Allows a CDIC member institution to retain the specific records referred to in the by-law (those in paragraphs (1)(b) and (g)) outside Canada if the member is a subsidiary of:
  • a foreign bank (as defined in the Bank Act) that is incorporated in a country or territory that is referred to in Schedule IV to the Bank Act, or
  • a regulated foreign entity (as defined in the Bank Act).
• The change is mainly a wording fix to align the Policy By-law with recent changes to Schedule IV of the Bank Act.

Who's affected#

• Primarily CDIC member institutions that are subsidiaries of foreign banks or of regulated foreign entities.
• The text refers to "records" listed in the by-law; the notice does not restate what those records are, so the exact record types affected are not specified in this summary.
• The regulatory statement attached to the by-law says it does not create new costs or burdens for member institutions.

Why it matters#

• This is a technical update to keep the Canada Deposit Insurance Corporation Deposit Insurance Policy By-law consistent with amendments to Schedule IV of the Bank Act that followed the United Kingdom’s accession to the CPTPP.
• In practice, it clarifies when some foreign-owned bank subsidiaries can store certain records outside Canada. That can give those institutions more operational flexibility.
• The by-law’s start date is linked to when section 11 of 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 comes into force; if that section is already in force when the by-law was registered, the by-law comes into force on registration (registered May 11, 2026).