New Credit Union Deposit Insurance Advertising Rule Approved by Minister of Finance
TORONTO, April 23, 2020 – On April 8, 2020, the Minister of Finance approved the Credit Union Deposit Insurance Advertising Rule (the Rule), which will come into effect on April 23, 2020.
In accordance with the Rule, credit unions and caisses populaires are expected to have the new advertising material (e.g., decals, brochures) posted and available on July 23, 2020, three months after the Rule comes into effect.
The Rule governs how credit unions and caisses populaires advertise deposit insurance coverage. Credit unions and caisses populaires are required to display decals and promotional material in branches and on their websites.
Credit union members can be confident that their deposits are protected. The Financial Services Regulatory Authority of Ontario (FSRA) maintains a Deposit Insurance Reserve Fund (DIRF) to protect insurable deposits held at Ontario credit unions and caisses populaires.
Our deposit insurance program covers insurable deposits held in non-registered accounts up to a maximum of $250,000. Insurable deposits that are held in registered accounts (e.g., a GIC held in an RRSP) have unlimited coverage. Deposit insurance coverage is provided by the DIRF administered by FSRA and pre-funded by Ontario credit unions and caisses populaires at no cost to depositors.
Ontario’s credit union and caisse populaire sector is made up of 66 institutions which, combined, hold over $70 billion in assets. The sector is well-capitalized and has strong liquidity coverage.
FSRA supervises credit unions and caisses populaires and contributes to the stability of the sector for the benefit of depositors, pursuant the Credit Unions and Caisses Populaires Act, 1994 and the Financial Services Regulatory Authority of Ontario Act, 2016.
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For information about FSRA’s Credit Union Deposit Insurance Advertising Rule, please visit https://www.fsrao.ca/regulation/rules.
Credit unions and caisses populaires may contact their Relationship Managers for additional details or any questions.
To learn more about how FSRA is responding to the needs of industry and consumers during COVID-19 pandemic, please visit https://www.fsrao.ca/industry/credit-unions-and-caisse-populaires-sector.