Public consultation on proposed amendments to O. Reg. 105/22 under the Credit Unions and Caisses Populaires Act, 2020 (CUCPA) related to the new First Home Savings Accounts (FHSA).
O. Reg. 105/22
Regulation - LGIC
Bill or Act:
Credit Unions and Caisses Populaires Act, 2020 (CUCPA)
Summary of Proposal:
Ontario continues to take action to tackle the province's housing supply crisis. We have already introduced a range of measures to increase housing supply and we can see their growing and positive impact. We know it will take time for their impact to be fully felt, but we will continue to move forward with policies aimed at ensuring we reach our goal of 1.5 million homes by 2031.
In this year's housing supply action plan the Helping Homebuyers, Protecting Tenants plan we are combining the Provincial Policy Statement and A Place to Grow: Growth Plan for the Greater Golden Horseshoe into a proposed single document that will streamline Ontario's land use planning rules and encourage more housing.
We're also introducing new legislation called Bill 97: the proposed Helping Homebuyers, Protecting Tenants Act, 2023 and taking steps to make life easier for both renters and home buyers. In partnership with municipalities, we will create the homes that Ontarians need today, tomorrow and in the decades to come.
The Ministry of Finance is seeking feedback on revised regulations to align with the introduction of the First Home Savings Account (FHSA) by the federal government. The following proposed amendments to O. Reg. 105/22 are recommended to:
• Add the FHSA to the list of deposits for which a credit union or caisse populaire can engage in fiduciary activity, as prescribed in subsection 57(a) of the General Regulation.
• Add the FHSA as an "insurable deposit" under subsection 108(2) of the General Regulation so that deposits made to FHSAs are also insured under Ontario's credit union/caisse populaire deposit insurance regime.
• Add FHSA to subsection 109(b) so that deposits made to FHSAs are insured the full amount of the insurable deposit.
Analysis of Regulatory Impact:
This proposal would allow provincially regulated credit unions and caisses populaires to offer the same guarantees for FHSAs as the ones offered for other registered accounts. There are no new costs associated with these changes. The Regulatory Impact Assessment (RIA) process has been initiated but is not yet complete.
Feedback received will be captured in the final approval package.
April 6, 2023
Comments Due Date:
May 6, 2023
Ontario Ministry of Finance
95 Grosvenor Street, 4th Floor
Toronto, ON M7A 1Z1