Overview – guidance
FSRA’s Resolution Planning Guidance sets out its interpretation of requirements under the Credit Unions and Caisses Populaires Act, 2020 (CUCPA 2020) relating to Resolution Planning for large credit unions and caisses populaires (CUs), as well as its approach for assessing CU adherence to the requirements. Key aspects covered include a CUs resolution strategy, feasibility of operational continuity and mitigation plans and the roles and responsibilities of CU management and the board.
The Guidance also describes how FSRA will assess whether CU resolution strategies and plans meet the goals of:
- removing material barriers to effective resolution
- contributing to public confidence in and the stability of the sector
- providing members and consumers with insurance against the loss of deposits
- ensuring the continuity of critical functions
- minimizing exposure of the Deposit Insurance Reserve Fund (DIRF) to loss
Outcome of consultation
Based on the feedback from the consultation, FSRA has made the following changes to the consultation draft of the Guidance:
- amended the timeline for submitting interim and final Resolution Plans based on the total assets of the CU. Also, acknowledged that resolutions plans may be required to assist FSRA in arranging for emergency liquidity assistance to the credit union sector and, therefore, timelines are subject to change if earlier dates are necessary to arrange for improved emergency liquidity arrangements
- amended the guidance to ensure that Resolution Plans include potential impacts of any existing and new business or investment activity
Feedback from the sector
FSRA received five submissions with feedback on the proposed Guidance during the consultation period (January 5, 2022 to February 18, 2022). The submissions and comments are also available on FSRA’s website.
FSRA would like to thank all stakeholders that commented on the proposed Guidance. FSRA has carefully considered all comments before finalizing.
Contributors: The following stakeholders shared their perspectives with FSRA through the formal consultation:
Alterna Savings and CU (Alterna)
Canadian CU Association (CCUA)
FirstOntario CU (FirstOntario)
Libro CU (Libro)
Stephen Bolton and Janet Johnson