The Government of Ontario has introduced amendments to Ontario Regulation 237/09 (General Regulation) under the Credit Unions and Caisses Populaires Act, 1994 (CUCPA). The amendments were filed on September 18, 2015 as Ontario Regulation 277/15, and will come into force on January 1, 2016.
Expansion of insurance promotion prohibition
Currently under the CUCPA, credit unions and caisses populaires are prohibited from selling and promoting insurance in their branches unless the insurance is related to the core business of the credit union or caisse populaire, such as creditor, mortgage, travel and group life insurance. The General Regulation lists these as “authorized” types of insurance.
On January 1, 2016, a new provision will be added to the General Regulation. New section 42.1 will expand existing prohibitions and Ontario credit unions and caisses populaires will no longer be allowed to directly or indirectly promote on their websites non-authorized insurance such as auto, home and individual life insurance.
The change will ensure greater consistency between the promotion of insurance products permitted online and the promotion permitted in branches. The changes will also align Ontario’s provisions with those in effect under the federal regime for banks.
FSCO is preparing to begin enforcing the amended General Regulation on January 1, 2016. Thus, credit unions and caisses populaires need to fully understand the new prohibition as it may necessitate changes to online practices, and promotional materials and links on their websites.
Copy of Regulation
Chief Executive Officer and
Superintendent of Financial Services
October 2, 2015