FSRA Stakeholder Advisory Committee – Credit Unions
The Financial Services Regulatory Authority of Ontario (FSRA) is committed to an open, transparent and collaborative approach that involves stakeholders and ensures broad input and perspectives to inform its direction.
The Stakeholder Advisory Committees (SACs) will serve as consultative bodies to the Board on FSRA’s priorities and budget, and other matters as the Board deems appropriate. They are an important part of FSRA’s stakeholder engagement process.
These Terms of Reference relate to FSRA’s role in the Ontario credit union sector, which includes:
- providing insurance against the loss of part or all of deposits with credit unions;
- promoting and otherwise contributing to the stability of the credit union sector in Ontario with due regard to the need to allow credit unions to compete effectively while taking reasonable risks; and
- pursuing the above objects for the benefit of persons having deposits with credit unions and in such manner as will minimize the exposure of the Deposit Insurance Reserve Fund to loss..
These Terms of Reference are intended to inform the creation of the Credit Union SAC.
2. Mandate of the Stakeholder Advisory Committee
The Credit Union SAC will:
- Inform FSRA’s annual business planning, with a focus on the credit union-related priorities and budget that will guide FSRA’s operations and regulatory activity, before FSRA’s annual business plan is delivered to the Minister of Finance;
- Provide feedback on the progress made by FSRA on its credit union priorities from the previous annual business plan;
- Provide feedback to the FSRA Board on rule-making activity in the credit union sector, where the Board believes that, given the complexity and importance of a specific rule and the issues identified by FSRA Management, the Board will benefit from direct engagement with the sector via the SAC;
- Upon request of FSRA, provide a forum for input on credit union sector issues, FSRA priorities and other initiatives or activities involving FSRA; and
- Have the opportunity for an in-camera session with the Board, at least annually, to raise any issues related to FSRA Management and the credit union sector that the SAC wishes to discuss with the Board without the presence of FSRA management. .
The Board may decide to convene a SAC meeting to discuss any other issue related to the regulation of the credit union sector, and may decide to combine SACs from different sectors for such a meeting.
3. Nomination and Appointment of Stakeholder Advisory Committee Members
Appointments to the Credit Union SAC will be made through an open nomination process posted online. Selections will be made by FSRA, based in part on the experience of the individuals who are put forward, the component of the credit union sector that they represent and other factors that FSRA may determine are relevant.
The Credit Union SAC will have a target membership of eight to twelve representatives of which two should be credit union Directors representing the voice of the consumer / credit union member. FSRA can choose to add or remove any member of the SAC at any time and a SAC member may resign by giving written notice.
FSRA is looking for members for an initial one-year term commencing in November 2019 and this term may be renewed by FSRA for one additional year to allow membership to be staggered so to provide continuity to the Committee.
FSRA will publish the names of the members of the Credit Union SAC on its website.
4. Members of the Stakeholder Advisory Committee
Stakeholder nominees to the Credit Union SAC should be senior members of their respective organizations or professions who can represent their organization or profession on relevant issues. Organizations cannot have more than one representative as a member of any one SAC. See Appendix 1 for specific experience FSRA is seeking to have represented through the stakeholder members of the Credit Union SAC.
It is important to ensure that FSRA hears a cross-section of views, including those representing consumer perspectives. Since credit unions are co-operatives that are owned by their members, who are their only consumers, credit union members have direct input into the strategic direction and priorities of the institution. Consequently, it is expected that the credit union Directors on the SAC will incorporate the views of their members into the feedback provided.
Responsibilities of SAC members include:
- reviewing background material in preparation for meetings
- attending meetings (delegation is not permitted if a member is unavailable, but FSRA may appoint another Credit Union SAC member on an interim basis if a member is unavailable due to incapacity or other justifiable temporary cause)
- providing advice, information and feedback to FSRA
- using best efforts to develop consensus and to identify any issues where stakeholder consensus does not exist and the reasons for absence of consensus
- providing feedback to FSRA on the functioning of the credit union SAC
- working with FSRA management and other SAC members to prepare for credit union SAC meetings with the Board
5. Public Process, Input from Others and Disclosure
The Freedom of Information and Protection of Privacy Act, R.S.O. 1990, c.F.31, as amended, will generally apply to information and material provided to and prepared by or for the Credit Union SAC.
Members of the Credit Union SAC are permitted to obtain assistance from co-workers or industry collaborators. However, members and those who assist them are required to maintain confidentiality of all information provided to the Credit Union SAC, or prepared by or for the Credit Union SAC for presentation or delivery to FSRA (with the exception of information made public by FSRA, including any submissions by the Credit Union SAC or its members as part of a public comment process sponsored by FSRA).
6. Meetings, Agendas and Deliverables
It is expected that the Credit Union SAC will participate in at least one half-day meeting about FSRA’s business planning, tentatively scheduled for the week beginning Monday, November 25, 2019, and another priorities meeting in fall 2020. There may be additional meetings as per the terms of reference.
For those selected to participate on the SACs, FSRA will not be providing any remuneration. However, consumers residing outside of the Greater Toronto Area are entitled to be reimbursed for reasonable travel expenses they may incur in attending meetings in accordance with FSRA approved Travel, Meal and Hospitality Directive.
Members may be asked to prepare material for consideration by FSRA or for presentation to the Board.
FSRA management shall endeavour to provide meeting agendas and related materials at least one week in advance of each regular meeting. FSRA management shall prepare a summary of each SAC meeting with the Board and distribute it, including any accompanying written submissions, to members, typically within three weeks following a meeting. FSRA also intends to publish a high-level summary of the Credit Union SAC’s work on FSRA’s website within approximately three weeks of each meeting with the Board.
Industry Member Qualifications
FSRA is seeking industry members that have direct experience dealing with regulatory and/or strategic issues.
Membership should include representation from, but not be limited to:
- Credit unions of varying sizes (large, mid, small)
- Credit unions that operate in different geographical regions (representation from across Ontario, including rural communities, where possible)
- Consumers (i.e., credit union Directors who are elected by members)
- Industry associations