Regulation - LGIC
Proposed amendments to the General Regulation (O. Reg. 237/09) of the Credit Unions and Caisses Populaires Act, 1994 to change the deposit insurance limit and permit credit unions to own insurance brokers as subsidiaries
Regulation Number(s):
Ontario Regulation 237/09
Instrument Type:
Regulation - LGIC
Bill or Act:
Credit Unions and Caisses Populaires Act, 1994
Summary of Proposal:
The government is proposing to amend the General Regulation to set the deposit insurance coverage limit at $250,000.
- The $250,000 coverage limit would apply to aggregate eligible deposits held by a depositor at each Ontario credit union.
- A $250,000 coverage limit would also apply to aggregate eligible deposits in each of the following types of registered accounts: Registered Retirement Savings Plans, Registered Education Savings Plans, Registered Disability Savings Plans, Registered Retirement Income Funds, and Tax Free Savings Accounts.
- Eligible deposits include savings accounts, chequing accounts and term deposits. They do not include uninsured financial products like mutual funds, stocks, and bonds.
The government is proposing to amend the General Regulation to permit credit unions to own the following types of entities as subsidiaries, in addition to the types of entities currently prescribed in the regulation:
- a corporation that is licensed as an agent under the Insurance Act or under comparable legislation of another jurisdiction in Canada; and
- a corporation that is a registered insurance broker under the Registered Insurance Brokers Act or is registered as an insurance broker under comparable legislation of another jurisdiction in Canada.
- The $250,000 coverage limit would apply to aggregate eligible deposits held by a depositor at each Ontario credit union.
- A $250,000 coverage limit would also apply to aggregate eligible deposits in each of the following types of registered accounts: Registered Retirement Savings Plans, Registered Education Savings Plans, Registered Disability Savings Plans, Registered Retirement Income Funds, and Tax Free Savings Accounts.
- Eligible deposits include savings accounts, chequing accounts and term deposits. They do not include uninsured financial products like mutual funds, stocks, and bonds.
The government is proposing to amend the General Regulation to permit credit unions to own the following types of entities as subsidiaries, in addition to the types of entities currently prescribed in the regulation:
- a corporation that is licensed as an agent under the Insurance Act or under comparable legislation of another jurisdiction in Canada; and
- a corporation that is a registered insurance broker under the Registered Insurance Brokers Act or is registered as an insurance broker under comparable legislation of another jurisdiction in Canada.
Further Information:
Proposal Number:
16-MOF008
Posting Date:
March 16, 2016
Comments Due Date:
April 30, 2016
Contact Address:
Daniel Padro
Senior Policy Advisor
Financial Institutions Policy Branch
Financial Services Policy Division
Ministry of Finance
95 Grosvenor Street, 4th Floor
Toronto, Ontario
M7A 1Z1
Senior Policy Advisor
Financial Institutions Policy Branch
Financial Services Policy Division
Ministry of Finance
95 Grosvenor Street, 4th Floor
Toronto, Ontario
M7A 1Z1