Updates To Guidance For Merging With An FCU Should Be Considered

We believe that the Office of the Superintendent of Financial Institutions (OSFI) should consider updating existing guidance (or developing new guidance) in respect of certain applications from a provincial credit union wishing to become a federal credit union (FCU) to specifically contemplate a particularly unique scenario.

At present, a provincial credit union wanting to become an FCU under the Bank Act (BA) can seek to do so in one of two ways: (i) apply to the Minister of Finance (the Minister) for letters patent continuing it as an FCU under the BA¹; or (ii) apply to the Minister for letters patent continuing it as an FCU for purposes of immediately amalgamating with another FCU in accordance with the BA.²