Ontario Receives Recommendations to Help Credit Unions Better Serve Members
Recommendations aim to reduce regulatory burden and modernize the credit union sector
GUELPH — The Ontario government is reviewing recommendations to help credit unions and caisses populaires better serve their communities.
MPP Stan Cho, Parliamentary Assistant to the Minister of Finance, was at the Meridian Credit Union in Guelph today to announce recommendations to reduce regulatory burden and drive competitiveness and innovation in the credit union sector.
"Credit unions and caisses populaires play an important role in communities across Ontario by helping families and businesses invest in their future," said MPP Cho. "The legislation governing credit unions is outdated. A new framework would help credit unions be more agile and competitive, and better positioned to meet the needs of their members."
A legislative review of the Credit Unions and Caisses Populaires Act was led by MPP Cho. Based on consultations with the public and industry groups, MPP Cho recommends that a modern framework for credit unions would aim to drive competitiveness and innovation while enhancing customer experience by:
- Moving to a principles-based approach to reduce regulatory burden and enable credit unions to be more agile.
- Expanding business and investment powers to allow credit unions to offer more services.
- Improving consumer protection, by having the legislation reflect adoption of an industry-led Market Conduct Code.
The government is considering the Parliamentary Assistant's recommendations.
"I want to thank everyone who participated in the review for their valuable feedback on making sure the unique and diverse needs of credit unions and their members are better represented," said MPP Cho. "Modernizing financial services is part of our government's plan to foster economic growth and build a more competitive business environment in Ontario."
- About 1.7 million Ontarians are members of a credit union or caisses populaires.
- Credit unions and caisses populaires are regulated by the Financial Services Regulatory Authority of Ontario, the new, independent financial regulator.
- The Credit Unions and Caisses Populaires Act requires a review of the legislation and regulations every five years and that the recommendations be made public.
- The government released a consultation paper and engaged extensively with industry groups to receive feedback on reducing regulatory burden, increasing investment and improving consumer experience.