Technical Advisory Committee for Deposit Insurance Reserve Fund (DIRF)
Introduction
Deposit Insurance Reserve Fund (DIRF) adequacy is essential to sector stability. FSRA recognizes that there is a cost to the sector as it is a use of capital that cannot otherwise be deployed to service a credit union’s members and/or grow the institution. For this reason, FSRA is seeking to develop better tools and information sources (in consultation with the sector) to better balance the need for a DIRF that is sufficient to ensure deposit protection and stability while not putting an undue economic burden on the sector.
The Technical Advisory Committee for Deposit Insurance Reserve Fund (“the Advisory Committee”) will facilitate a dialogue between FSRA and sector stakeholders on FSRA priorities related to the DIRF over the next couple of years.
Mandate
FSRA is establishing the Advisory Committee as a multi-year committee to provide expert insight as FSRA seeks to evolve its approach, tools and processes as they pertain to the DIRF. The committee will advise on initiatives such as the DIRF Adequacy Assessment Framework, Differential Premium Score (DPS) and other key projects.
Advisory committee membership
| Nomination Process | FSRA will post the open call for nominations on its website and ask for qualified individuals to apply. |
|---|---|
| Appointments | FSRA will appoint members based on the skills and experience of the nominees, with an emphasis on ensuring adequate diversity by geography and organization size for a two-year term. |
| Committee Size | Up to 10 members for the Advisory Committee (not including FSRA participants). FSRA may choose to add or remove a member at any time. |
| Member Qualifications | Members of the Advisory Committee should be executive or very senior members of their respective organization who can represent their organization on relevant issues related to data and analytics, risk management, and stress testing.
FSRA is seeking representation from credit unions with expert knowledge in the above noted areas. |
| Member Responsibilities | FSRA expects members to:
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| FSRA Members | FSRA’s Director, Risk Governance and Financial Stability, will Chair the Advisory Committee. |
Advisory committee outcomes
The Advisory Committee is expected to deliver the following outcomes, resulting from the committee meetings:
- Advice to inform FSRA’s approach and strategy to key DIRF Projects in accordance with FSRA’s statutory mandate.
- Advice on transparent development of tools and data on to inform future of the DIRF.
- Advice on sustainable and appropriate target size of the DIRF consistent with best practices in stress testing.
Confidential
The Freedom of Information and Protection of Privacy Act, R.S.O. 1990, c.F.31, as amended, will generally apply to information provided to the Advisory Committee and to material prepared by or for the Advisory Committee.
Members of the Advisory Committee are permitted to obtain assistance from co-workers or industry collaborators. However, until the Advisory Committee’s mandate is complete, Advisory Committee members and those that assist them are requested to maintain confidentiality (with the exception of information made public by FSRA). Following completion of the Advisory Committee’s mandate, an Advisory Committee member may communicate his or her views concerning the work of the Advisory Committee.
Meetings, agendas and deliverables
The Advisory Committee is expected to hold meetings twice a year at minimum (with possibility of more as required). Meetings will be held by videoconference, teleconference or in person where appropriate.
FSRA will provide meeting agendas and related materials at least one week in advance of each regular meeting. FSRA also intends to publish a high-level summary of the Advisory Committee’s work on FSRA’s website.
Questions about this committee or its membership can be directed to Joanna Wearing ([email protected]).
Media inquiries / Public appearances
Members of the Committee are not authorized to engage with the media or conduct media interviews in their capacity as Committee members. If contacted by the media, Committee members must direct all inquiries to FSRA’s Sr. Manager, Media Relations, who will determine the appropriate spokesperson and/or response. Committee members do not represent FSRA publicly; their role is to provide confidential advice to FSRA management and the Board.
FSRA’s Sr. Manager, Media Relations, in consultation with the Chief Public Affairs Officer and the responsible EVP will determine the most appropriate spokesperson and/or response to any media inquiries or public speaking requests related to the Committee.