Applications, Variations and Exemptions
Effective October 1, 2009 DICO is responsible for the approval of specific transactions as identified in the Act regarding Applications, Variations and Exemptions. DICO has committed to administer these responsibilities in a fair and transparent manner, in accordance with established criteria.
Credit unions need to apply to DICO for approval to conduct certain transactions or for a variation or exemption to certain regulatory requirements. The application must contain a letter signed by the credit union’s CEO on the credit union’s letterhead outlining the type of application being made and include a summary of the rationale and supporting documentation. DICO will acknowledge all applications within 5 business days of receipt. DICO will review the credit union’s submission and provide a response as outlined in DICO’s published Service Standards. Where an application is not approved, DICO will provide comprehensive rationale for the decision.
Under the Act 
, an insured institution must submit Applications to DICO for approval before completing certain specified transactions:
- Group Capital Agreement
- Borrow from Another Credit Union
- Acquire or Establish a Subsidiary
- Invest in another Credit Union
- Asset Purchase or Sale in Excess of 15% of the Assets of the Credit Union
Applications must be supported by detailed supporting rationale and will only be approved where it meets established criteria.
An insured institution may also apply to DICO for approval for Variations and Exemptions to the certain specified requirements of the Act .
- Capital and Liquidity Requirements
- Guarantees and Exemptions to Aggregate limits for Guarantees
- Increase in lending limits
- Extension to Divestment Period for Securities
- Deemed Prescribed Subsidiaries
- Investment Requirements
- Acceptance of Unauthorized Securities and Other Assets Obtained Upon Amalgamation
DICO may approve a temporary variation or exemption in exceptional circumstances where it meets established criteria.