FSRA takes steps to enhance public confidence in the credit union sector and better protect consumers

TORONTO, March 28, 2022 /CNW/ - The Financial Services Regulatory Authority of Ontario (FSRA) released final Risk Based Supervisory Framework Approach Guidance.

The Risk Based Supervisory Framework sets out FSRA's supervisory practices and approach to assessing the risk profile of credit unions. The integrated framework helps FSRA identify imprudent or unsafe business practices and misconduct that may impact consumers, including members and depositors, and enables timely intervention.

"This is an important milestone that will strengthen the credit union sector and lead to better protection for depositors, members and consumers," said Mehrdad Rastan, FSRA Executive Vice President, Credit Union and Insurance Prudential. "This initiative will enable credit unions to expand, grow and take risks prudently." 

FSRA's level and extent of supervision depends on the size, complexity, and risk profile of the credit union. The principles-based, proportional nature of the approach also promotes flexibility when assessing credit unions. 

FSRA thanks its Technical Advisory Committee on Regulatory and Supervisory Initiatives and consultation participants for their valuable input into the final Guidance. 

Learn more:

Risk Based Supervisory Framework Guidance
Risk Based Supervisory Framework Consultation Summary Report

FSRA continues to work on behalf of all stakeholders, including consumers, to ensure financial safety, fairness, and choice for everyone. 

Learn more at www.fsrao.ca.

SOURCE Financial Services Regulatory Authority of Ontario

For media inquiries: Russ Courtney, Sr. Media Relations and Digital Officer, Financial Services Regulatory Authority, C: 437-225-8551, Email: [email protected]