FSRA Stakeholder Advisory Committee for Credit Unions
Summary of the Meeting of November 27, 2020
Stakeholder Advisory Committee Members Present:
Stephen Bolton – Libro Credit Union
Martha Durdin – Canadian Credit Union Association
José Gallant – Alterna Savings
Leo Gautreau – Meridian Credit Union
David Gunderson – Ontario Educational Credit Union
Allison Kasper – Copperfin Credit Union
Diane Kocet – The Energy Credit Union
Mark Oakes – Kawartha Credit Union Limited
Taras Pidzamecky – Ukrainian Credit Union Limited
Luc Racette – Caisse populaire Alliance
Bernard Brun – Desjardins (delegate for William Boucher)
Board Members Present:
Bryan Davies – Chair of the Board
Blair Cowper-Smith – Director
Joanne De Laurentiis – Director
Joseph Iannicelli – Director
Stewart Lyons – Director
Brigid Murphy – Director
Lawrence Ritchie - Director
Brent Zorgdrager – Director
Management Members Present:
Mark White – Chief Executive Officer
Guy Hubert – Executive Vice President, Credit Unions
Huston Loke – Executive Vice President, Market Conduct
Glen Padassery – Executive Vice President, Policy & Chief Consumer Officer
Steve Power – Executive Vice President, Corporate Services
Randy Nanek – Chief Financial Officer
Dan Padro – Director, Credit Unions Policy
Corporate Secretary’s Office:
Alena Thouin – Corporate Secretary and Deputy General Counsel
Margaret Kingerski – Assistant Corporate Secretary
The Chair of the Board called the meeting to order and provided introductory remarks. The members were advised that the FRSA Board of Directors had resolved to extend their term for an additional year.
The Committee reflected that its relationship with FSRA is evolving and acknowledged the demonstrated desire to be more open and transparent. The Committee looks forward to a more collaborative working relationship, particularly given the sector’s new legislation.
The Committee commended FSRA’s work on improving the sector’s access to liquidity facilities, its efforts to modernize the Credit Union and Caisse Populaires Act, and the new principles-based Residential Mortgage Lending Guidance.
The Committee was pleased that FSRA had heard the requests by the sector and engaged in a marketing campaign to explain the deposit protection regime to members. It also noted that FSRA has everything necessary to be a Canadian leader in regulation.
Feedback on Draft F2021–2022 Priorities and Business Plan
The Committee provided feedback on the draft F2021-2022 Priorities and Business Plan and requested to review the budget in more detail. It expressed concern about the significant fee increase, noting impacts to the sector due to COVID-19 that will make it challenging for the sector to absorb the increase. Acknowledging FSRA’s own challenges and the need to invest, the sector would appreciate more information on the expected benefits and any assistance with cost deferral.
The Committee suggested that FSRA consider delaying or reprioritizing certain priorities. It discussed shifting resources in order to complete work on the risk-based supervisory framework sooner. FSRA management noted that it was moving the risk-based supervisory framework forward as quickly as possible given its current resources.
It was noted that the new Credit Unions and Caisses Populaires Act, 2020, once proclaimed, would provide credit unions additional flexibility in their business and investment powers, and offer more flexibility to FSRA as a regulator. FSRA management noted that its multi-year work plan, which was finalized in partnership with the sector, prioritized developing the rules required to proclaim the new act into force, so that credit unions could enjoy this flexibility. Guidance setting out how FSRA would supervise against those new powers is targeted to be completed shortly after the proclamation, but is not required to give effect to the new legislation.
The Committee was concerned about the Digital Transformation Plan, specifically that the enhancements were more than strictly necessary. FSRA management advised that it had consulted with other regulators to develop the Plan and will engage in joint procurements with those regulators where practical to do so. The sector may expect to hear more about the Digital Transformation Plan in early 2021, including the launch of an advisory committee.
The Committee noted that the service standards are basic, and it would like to see annual reporting on these standards.
The Committee encouraged FSRA to maintain an open dialogue with the sector and consider engaging the sector much earlier in the development of the budget and priorities.