Technical Advisory Committee for Deposit Insurance Reserve Fund (DIRF)

Introduction

Deposit Insurance Reserve Fund (DIRF) adequacy is essential to sector stability. FSRA recognizes that there is a cost to the sector as it is a use of capital that cannot otherwise be deployed to service a credit union’s members and/or grow the institution. For this reason, FSRA is seeking to develop better tools and information sources (in consultation with the sector) to better balance the need for a DIRF that is sufficient to ensure deposit protection and stability while not putting an undue economic burden on the sector.

The Technical Advisory Committee for Deposit Insurance Reserve Fund (“the Advisory Committee”) will facilitate a dialogue between FSRA and sector stakeholders on FSRA priorities related to the DIRF over the next couple of years.

Mandate

FSRA is establishing the Advisory Committee as a multi-year committee to provide expert insight as FSRA seeks to evolve its approach, tools and data collection processes as they pertain to the DIRF. The committee will advise on initiatives such as the DIRF Adequacy Assessment Framework, Differential Premium Score (DPS), DIRF premiums and other key projects.

Advisory committee membership

Nomination Process

FSRA will post the open call for nominations on its website and ask for qualified individuals to apply.

Appointments

FSRA will appoint members based on the skills and experience of the nominees, with an emphasis on ensuring adequate diversity by geography and organization size for a two-year term.

Committee Size

Up to 10 members for the Advisory Committee (not including FSRA participants). FSRA may choose to add or remove a member at any time.

Member Qualifications

Members of the Advisory Committee should be executive or very senior members of their respective organization or profession who can represent their organization or profession on relevant issues related to data and analytics, risk management, stress testing.

In particular, FSRA is seeking members with direct experience in risk management, financial analysis and modelling, with a focus on experience related to:

  • Risk management and stress testing
  • Financial analysis and modeling
  • Fund management

FSRA is seeking representation mainly from, but not limited to, credit unions, sector partners and other individuals with expert knowledge in the above noted areas.

Member Responsibilities

FSRA expects members to:

  • Review background material in preparation for meetings
  • Provide advice, proposals and feedback to FSRA
  • Use best efforts to, where possible, develop consensus and
  • Provide feedback to FSRA on the overall functioning of the committee

FSRA Members

FSRA’s Director, Policy Support and Approvals, will Chair the Advisory Committee.

Advisory committee outcomes

The Advisory Committee is expected to deliver the following outcomes, resulting from the committee meetings:

  • Advice to inform FSRA’s approach and strategy to key DIRF Projects in accordance with FSRA’s statutory mandate.
  • Advice on transparent development of tools and data on to inform future of the DIRF.
  • Advice on sustainable and appropriate target size of the DIRF consistent with best practices in stress testing.

Confidential

The Freedom of Information and Protection of Privacy Act, R.S.O. 1990, c.F.31, as amended, will generally apply to information provided to the Advisory Committee and to material prepared by or for the Advisory Committee.

Members of the Advisory Committee are permitted to obtain assistance from co-workers or industry collaborators.  However, until the Advisory Committee’s mandate is complete, Advisory Committee members and those that assist them are requested to maintain confidentiality (with the exception of information made public by FSRA).  Following completion of the Advisory Committee’s mandate, an Advisory Committee member may communicate his or her views concerning the work of the Advisory Committee.

Meetings, agendas and deliverables

The Advisory Committee is expected to hold meetings at least twice a year at minimum (with possibility of more as required). Meetings will be held by videoconference, teleconference or in person where appropriate.

FSRA will provide meeting agendas and related materials at least one week in advance of each regular meeting. FSRA will also prepare a summary of each meeting and distribute it, including any accompanying written submissions, to Advisory Committee members no later than three weeks following a meeting. FSRA also intends to publish a high-level summary of the Advisory Committee’s work on FSRA’s website.

Questions about this committee or its membership can be directed to Joanna Wearing (Joanna.Wearing@fsrao.ca).