How Ontario Credit Unions Are Regulated
Ontario credit unions are regulated through a comprehensive regulatory framework which involves the Ministry of Finance ↗, the Financial Services Commission of Ontario (FSCO) ↗ and the Deposit Insurance Corporation of Ontario (DICO).
This regulatory framework includes:
- Credit Union and Caisses Populaires Act (Act) and associated Regulations
- By-laws and policies of credit unions
- Guidelines and directives of the Financial Services Commission of Ontario.
- DICO's policy of deposit insurance and its by-laws and Guidance Notes.
- By-law #3 - Deposit Insurance Scheme
- By-law #5 - Standards of Sound Business and Financial Practices
- By-law #5 - Commercial Lending Practices May 2005 (updated May 2008)
- By-law #5 - Revised, February 2005
- By-law #6 - Standards of Sound Business and Financial Practices: Impaired Loans
- By-law #6 - Application Guide, Spring 2002
- By-law #6 - Sample Present Value Tables, Spring 2002
- Capital Adequacy Guideline (2009)
- Guidance Note Investments (2009)
- Guidance Note Lending (2009)
- Guidance Note Liquidity (2009)
- Guidance Note Structural (Interest Rate) Risk(2009)
- By-law #3 - Deposit Insurance Scheme
The Ministry of Finance is responsible for developing and establishing the legislative and regulatory framework under which credit unions must operate. FSCO is responsible for ensuring that credit unions operate in accordance with the requirements of the Act and Regulations, particularly with respect to issues involving market conduct issues relating to members and the general public.
DICO is responsible for overseeing compliance with solvency rules and for providing deposit insurance protection for deposits held in Ontario credit unions up to prescribed limits. As part of this responsibility, DICO has the authority to issue by-laws to ensure that insured institutions operate in accordance with Sound Business and Financial Practices.