The Autorité des marchés financiers (AMF) has signed of a memorandum of understanding (MOU) with the Canada Deposit Insurance Corp. (CDIC) for co-operation and information exchange with respect to deposit insurance and resolution of domestic systemically important financial institutions (D-SIFIs), the Quebec regulator announced on Monday.
The agreement also “opens up new possibilities” in terms of the AMF and CDIC to work to enable business continuity and crisis management in the sector, the AMF says in a news release.
“The signing of this MOU is a key step in our efforts to enhance and formalize co-operation between the AMF and other federal and provincial supervisors of the financial sector. This significant development will help us prevent and deal with the potential failure of a D-SIFI,” says Louis Morisset, president and CEO of the AMF, in a statement.
“By promoting improved risk management, the MOU will bolster market stability and strengthen industry and consumer confidence in the soundness of the Quebec financial system,” Morisset continues.
The signing of the MOU also demonstrates the AMF’s commitment to comply with the principles of the International Association of Deposit Insurers, and to satisfy the International Monetary Fund’s expectations for co-operation among federal and provincial authorities, the regulator says.