The Office of the Superintendent of Financial Institutions (OSFI) issued guidance on Tuesday that sets out the process for credit co-operatives seeking to become credit unions regulated under federal banking laws.
OSFI assesses applications from organizations looking to make the switch and makes recommendations to the federal finance minister, who has the ultimate responsibility for approving the move.
The guide sets out the two phases of that application process and outlines the information that must be submitted in support of an application to the finance minister. It also sets out the various prudential, regulatory and legislative criteria that apply to firms.
“One of the primary objectives of this guide is to promote awareness and enhance the transparency of the assessment criteria and processes for continuance as [a federal credit union],” OSFI notes.