Proposed amendments to the General Regulation (O. Reg. 237/09) of the Credit Unions and Caisses Populaires Act, 1994
Ontario Regulation 237/09
Bill or Act:
Credit Unions and Caisses Populaires Act, 1994
Summary of Proposal:
Subject to the coming into force of Schedule 5 of Bill 70, the Building Ontario Up for Everyone Act (Budget Measures), 2016, which amends the Credit Unions and Caisses Populaires Act, 1994, the Ministry of Finance is proposing to amend Ontario Regulation 237/09 to:
Set the deposit insurance limit for non-registered insurable deposits at $250,000, while maintaining unlimited deposit insurance for the full amount for insurable registered deposits;
Remove differentiated rules for small credit unions;
Permit credit unions to enter into loan syndication agreements with credit unions in other provinces; and
Permit credit unions to establish or acquire a corporation that is an insurance agent or a registered insurance broker.
Under the proposed regulation:
Insurable deposits would be defined for the purposes of deposit insurance, and the Deposit Insurance Corporation of Ontario (DICO) would provide deposit insurance coverage up to a limit of $250,000 for insurable non-registered deposits.
Insurable deposits held in registered accounts would continue to be insured for the full amount of the deposit.
Definitions of class 1 and class 2 credit unions would be removed. Class 1 credit unions would be subject to class 2 rules, but lending limits would not be more restrictive than what is currently allowed for class 1 credit unions.
Subject to certain conditions, Ontario credit unions would be permitted to enter into loan syndications with credit unions incorporated in another province or territory of Canada.
Extra-provincial credit unions would be permitted to be registered in the Extra-Provincial Credit Unions Register to participate in syndicated loans in Ontario, subject to certain conditions, including providing information to the regulators and paying such fees as required.
Credit unions would be allowed to establish or acquire a corporation that is an insurance agent or a registered insurance broker.
November 25, 2016
Comments Due Date:
January 9, 2017
Deposit Taking and Cooperatives Policy Unit
Financial Services Policy Division
Ministry of Finance
Frost North - 4th Floor
95 Grosvenor Street
Toronto, ON M7A 1Z1