TORONTO–The government of Ontario has unveiled a new budget that is accompanied by a comprehensive modernization of the Credit Union and Caisses Populaires Act.
The Canadian Credit Union Association noted that since 1994, when The Credit Union Act was passed, the financial services landscape has changed significantly and the legislation governing the sector has become outdated. The CCUA said the modernization of the Act will help credit unions be more agile, competitive and increase the products and services they can offer to their members.
“This is timely and immensely positive news for Ontario credit unions and their members. The new legislation will put the sector in a stronger position to meet the needs of small and medium sized businesses during this economic recovery,” said Martha Durdin, President and CEO Canadian Credit Union Association.
The Key Highlights
According to the CCUA, key highlights of the new legislation include:
- Expanded business powers through more flexibility instead of restrictive rules
- The Market Conduct Code will be recognized in the credit union legislation
- Governance provisions will become more principles-based, with significant sections being deferred to credit union’s bylaws
- Credit unions will be able to offer services to non-members
- Credit unions will be able to offer property and casualty insurance in branch
- The credit union legislation will sunset every five years