Regulation - LGIC

Public consultation on proposed amendments to O. Reg. 105/22 under the Credit Unions and Caisses Populaires Act, 2020 (CUCPA) to remove the requirement for credit unions to include the last audited financial statements that were tabled before credit union members in any offering statement.

Regulation Number(s):
O. Reg. 105/22
Instrument Type:
Regulation - LGIC
Bill or Act:
Credit Unions and Caisses Populaires Act, 2020 (CUCPA)
Summary of Proposal:
The Ministry of Finance is seeking feedback on proposed amended regulations to reduce burden on credit unions.

The proposed amendment to section 13(5)(1) of Part IV of O. Reg. 105/22 would remove the requirement that an offering statement must include the audited financial statements "that were placed before the members at the most recent annual general meeting".

Due to the timing of the offering statement and the annual general meeting, this requirement often leads to two separate audited financial statements being included in an offering statement. This can increase the size of an offering statement by 100-200 pages, with no benefit to potential investors.

The existing requirement that the audited financial statements be approved by the board and signed by the CEO would remain as that is important material information for investors.
Analysis of Regulatory Impact:
There are no new costs associated with these changes to the implementation dates.

The proposed amendments would make it easier for credit unions to attract investment through the issuance of offering statements as the requirement no longer reflects the evolution of the sector.
This proposal would remove unnecessary burden and paperwork and make it easier for credit unions to issue offering statements.
It will make it easier for potential investors to review those offering statements as they will not need to receive two sets of audited financial statements.
The Financial Services Regulatory Authority of Ontario (FSRA) estimates that for the larger, more complex credit unions in the provinces, removing this requirement would result in shortening offering statement by 100-200 pages.
FSRA estimates that credit unions would save approximately $10,000 for each offering statement that they issued if this requirement was removed.
This amendment aligns with the government's priority to reduce unnecessary administrative and regulatory burdens for businesses.
Further Information:
Proposal Number:
Posting Date:
October 19, 2023
Comments Due Date:
December 4, 2023
Contact Address:
Ontario Ministry of Finance
95 Grosvenor Street, 4th Floor
Toronto, ON M7A 1Z1