FSRA Takes Steps to Ensure Large Credit Unions Have Plans in Place to Better Protect Their Members

TORONTO, April 27, 2022 /CNW/ - To better protect credit union members and depositors and enhance public confidence in the sector, the Financial Services Regulatory Authority of Ontario (FSRA) is releasing its final Resolution Planning Guidance. The Guidance helps ensure large credit unions with over $1 billion in assets have a solid resolution plan in place.

"It is critical that credit unions prepare for severely adverse scenarios as disorderly failures may have material impact on the stability and reputation of the sector," said Mehrdad Rastan, FSRA EVP of Credit Union & Insurance Prudential. "No one wants to see a credit union fail but having robust and credible resolution plans in place will enhance confidence in those credit unions and the sector."

The Guidance sets out the principles of effective resolution planning and FSRA's expectation of what constitutes a sound and effective resolution strategy. Credit unions must develop a plan that meets the goals of: 

• Protecting sector stability;
• Ensuring business continuity;
• Protecting members and depositors; and
• Minimizing exposure of the Deposit Insurance Reserve Fund (DIRF) to losses.

As a result of stakeholder feedback, the final Guidance includes revised interim and final plan submission timelines staggered based on credit union asset size.

Learn more:

• Final Resolution Planning Guidance
• 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, Senior Media Relations and Digital Officer, Financial Services Regulatory AuthorityC: 437-225-8551, Email: [email protected]