FSRA takes action to protect the interests of Rapport Credit Union members
As the regulator of Ontario credit unions, the Financial Services Regulatory Authority of Ontario (FSRA) has power to ensure that credit unions manage their operations in a prudent manner. The primary focus of our regulation and supervision is on protecting credit union members, based on the understanding of how current and future events and risks may impact credit unions.
As part of this oversight, and pursuant to section 199 of the Credit Unions and Caisses Populaires Act, 2020, S.O. 2020, c. 36, Sched. 7 ("CUCPA”), credit unions are required to provide FSRA with all requested information necessary to the supervisory process, including but not limited to information on board governance, strategy and plans to ensure continuing financial health of the credit union, reflected in adequate liquidity and strong capital to mitigate any shortfalls and unexpected losses.
On Monday October 23, 2023, FSRA issued a Notice of Intention to issue an order removing Gary Brown as Director and Board Chair of Rapport Credit Union (“Rapport”) due to his repeated failure to provide this statutorily required information when requested by FSRA. As is their right, Mr. Brown and Rapport subsequently provided submissions to FSRA that Mr. Brown should not be removed as a Director.
After considering the submissions, on November 14, 2023, FSRA issued an order pursuant to section 94 of the CUCPA to remove Mr. Gary Brown as director of Rapport. Mr. Brown’s refusal or failure to provide information required by FSRA caused Rapport to be in breach of section 199 of the CUCPA. Accordingly, and pursuant to paragraph 94(1)(b) of the CUCPA, the Executive Vice President of Credit Unions and Insurance Prudential for FSRA determined that it is in the best interests of Rapport’s members that Mr. Brown be removed as a Director.
Rapport and Brown may appeal FSRA’s order to the Financial Services Tribunal.
Rapport, which is headquartered in Toronto, continues to be financially stable. Insurable member deposits continue to be insured through the Deposit Insurance Reserve Fund (DIRF) administered by FSRA.
Access our enforcement database to see how FSRA is working to protect consumers through its monitoring and enforcement activities.
For media inquiries:
Sr. Manager of Media Relations
Financial Services Regulatory Authority
Email: [email protected]