Following a resolution by CDIC, if creditors and shareholders are in a worse financial position than they would have been had the institution been liquidated, the CDIC Act provides an important safeguard to ensure that creditors and shareholders of the financial institution are compensated. This protection is consistent with international standards and best practices. This safeguard applies in respect of all CDIC’s member financial institutions and resolution tools.
For more information on the compensation regime, consult our backgrounder.