FSRA Releases Credit Union Recovery Planning Guidance

TORONTO, July 5, 2021 /CNW/ - The Financial Services Regulatory Authority of Ontario (FSRA) continues to make the protection of members' deposits and the stability of the credit union sector a priority.  

After consulting with the sector, FSRA is releasing final Recovery Planning Guidance to help credit unions increase their resiliency. Recovery plans equip credit unions with strategies to use in the event of a crisis.

The Guidance comes into effect on July 5, 2021. Credit unions have until January 13, 2023 to submit their final plans. FSRA is asking for interim submissions with key elements of the plans by January 14, 2022, so feedback can be provided before the 2023 deadline.

The Guidance sets out the principles of effective recovery planning. It also describes how FSRA will assess the quality of risk management and credibility of recovery options.

Based on Consultation feedback, the Guidance now includes a phase in period. The phase in period gives credit unions more time to work with FSRA before submitting their final plans in 2023. FSRA will also consider proportionality when assessing whether credit unions are adhering to the principles set out in the Interpretation.

Learn more:

• Credit Union Recovery Planning Guidance
• Credit Union Recovery Planning Guidance – Sector Consultation

The Financial Services Regulatory Authority of Ontario (FSRA) is continuing to work with those we regulate to ensure financial safety, fairness and choice for consumers and members. Learn more at www.fsrao.ca.

SOURCE Financial Services Regulatory Authority of Ontario