FSRA takes steps to balance credit union growth with member protection
The Financial Services Regulatory Authority of Ontario (FSRA) is helping to foster a sustainable credit union sector by balancing the obligation to protect depositors with the need for credit unions to be competitive and take reasonable risks.
In its final Business and Investment Activities Guidance, FSRA is setting out what it will consider before approving or authorizing new or expanded business and investment activities, variations and extensions by credit unions.
The Credit Unions and Caisses Populaires Act, 2020 broadens the scope of eligible activities for credit unions. Credit unions must obtain FSRA’s approval or authorization before engaging in certain transactions identified in the Guidance.
“It is important for the credit union sector to know FSRA’s criteria for approving new business and investment activities so they can enter new businesses, take risks and grow prudently while maintaining the confidence of their members and depositors,” said Mehrdad Rastan, FSRA EVP of Credit Union & Insurance Prudential.
Based on feedback received during the consultation, FSRA made minor changes which clarify the purpose and intent of the Guidance. The principles and criteria set out in the Guidance are intended to expedite the approval of transactions by FSRA, not set additional requirements or obligations.
FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone.
Learn more at www.fsrao.ca.
For media inquiries:
Senior Media Relations and Digital Officer
Financial Services Regulatory Authority
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