Modernizing Ontario’s credit union legislative framework


Every five years, the Credit Unions and Caisses Populaires Act, 1994 (CUCPA) and its regulations are required by law to be reviewed. In 2014, the Parliamentary Assistant to the Minister of Finance was appointed to lead the five-year review of the CUCPA and seek input from stakeholders and the public on ways to strengthen the regulatory framework, protect consumers and enable credit unions and caisses populaires to continue to meet the needs of their members.


The report of the review of CUCPA by the Parliamentary Assistant to the Minister of Finance was completed in November 2015. For more details on the CUCPA consultation and report, please visit the Ministry of Finance website [New Window].


In the 2016 Ontario Budget, the government announced its intention to implement the recommendations contained in the November 2015 report on the review of the CUCPA.


Amendments to the CUCPA and General Regulation effective January 1, 2018

The following amendments to the General Regulation (Ontario Regulation 237/09) under CUCPA are effective January 1, 2018:


  • setting the deposit insurance limit for non-registered insurable deposits at $250,000 (unlimited deposit insurance for the full amount for insurable registered deposits will be maintained);
  • removing differentiated rules for small credit unions; and
  • permitting credit unions to establish or acquire a corporation that is an insurance agent or a registered insurance broker.

In addition, extra-provincial credit unions will be permitted to participate in syndicated loans in Ontario. Extra-provincial credit unions that wish to participate in syndicated loans in Ontario must be registered with FSCO. Registration forms are available on FSCO’s website [New Window].

Once registered, extra-provincial credit unions are required to provide FSCO with information about their business upon request.

For syndicated loans outside Ontario, Ontario credit unions may participate but not lead the syndication, provided the conditions in the General Regulation are met.

Consultation on proposed capital adequacy framework for Ontario credit unions

One of the recommendations in the November 2015 report was to adopt updated capital adequacy requirements for Ontario credit unions based on Basel III principles, with appropriate adjustments to reflect the capital structure of credit unions. The Ministry of Finance released a consultation paper on November 21, 2017 that sets out a detailed proposal for implementing this recommendation, and is seeking feedback. For more details on the consultation, please visit the Ministry of Finance website [New Window].