On January 31, 2020, Ontario credit unions shared recommendations for improving the legislation governing credit unions with MPP Stan Cho, Parliamentary Assistant to the Minister of Finance Rod Phillips. Earlier in the day the government reaffirmed its commitment to replace the outdated Credit Unions and Caisses Populaires Act, 1994.
“A new framework would help credit unions be more agile, competitive and better positioned to meet the needs of their members. Improving the legislation governing credit unions is part of the government’s commitment to foster economic growth by modernizing financial services,” said MPP Stan Cho.
“Ontario’s credit unions will welcome this new framework with open arms,” says George De La Rosa, CEO of Luminus Financial. “We look forward to being able to more efficiently serve our members and working with government to focus on red tape reduction ultimately allowing the system to be more innovative.”
“Modernizing the Credit Union and Caisses Populaires Act, 1994 is long overdue,” says Martha Durdin, President and CEO of The Canadian Credit Union Association (CCUA). “We are pleased with the work the government is doing to increase the opportunities for credit unions to expand and serve their members.”
The new framework for credit unions will drive competitiveness and innovation by enhancing the member experience through:
- Reducing the regulatory burden
- Moving to a regulatory approach that is principles-based
- Expanding powers of credit unions to offer more services
- Improving governance and consumer protection
Further reading:A Modern Framework for Credit Unions in Ontario: Reducing Red Tape and Increasing Investment
