Proposed amendments to the General Regulation (O. Reg. 237/09) of the Credit Unions and Caisses Populaires Act, 1994, regarding deposit insurance premiums
Ontario Regulation 237/09
Regulation - LGIC
Bill or Act:
Credit Unions and Caisses Populaires Act, 1994
Summary of Decision:
Ontario Regulation 120/14 made under the Credit Unions and Caisses Populaires Act, 1994, amending Ontario Regulation 237/09 (General Regulation), was filed on May 1, 2014.
December 10, 2013
Summary of Proposal:
The Ministry of Finance is proposing to amend the General Regulation to change how the Deposit Insurance Corporation of Ontario determines a credit union's annual deposit insurance premium.
For a credit union's financial year beginning on or after January 1, 2015, the Deposit Insurance Corporation of Ontario will determine the differential premium score of the credit union in accordance with the rules to be set out in the DICO Differential Premium Score Determination document to be published in The Ontario Gazette.
The differential premium score will be determined with reference to two components:
1. Capital: the level of regulatory capital of the credit union.
2. Corporate Governance: the effectiveness of the governance practices of the credit union.
The differential premium score is then used to calculate the annual deposit insurance premium based on the formula in the regulation.
Senior Policy Advisor
Deposit Taking Institutions Policy Unit
Industrial and Financial Policy Branch
Ministry of Finance
Frost North - 4th Floor
95 Grosvenor Street
Toronto, ON M7A 1Z1
January 1, 2015