Earnings & Dividend Growth Presentation
Compensation Regime
No creditor worse off: creditors and shareholders are compensated where they have been
made worse off than they would have been in a liquidation
• Persons who hold the following claims at the time of entry into resolution are entitled to
compensation:
o Shares of the institution
Subordinated debt vested in CDIC at the time of entry into resolution
。 NVCC subordinated debt subsequently converted into common shares pursuant to contractual terms
Liabilities subsequently converted into common shares pursuant to Bail-in power
○ Any liability of the institution if the institution was wound-up at the end of the resolution process
○ Any liability of the institution that was assumed by a CDIC-owned work-out company or bridge bank which was
subsequently liquidated or wound-up
• Compensation = liquidation value-resolution value.
·
⚫ Right to compensation is not transferrable
Scotiabank® 43View entire presentation