The Financial Services Regulatory Authority of Ontario (FSRA) has announced that it will complete a follow up review of deposit insurance advertising practices, beginning in December 2022, after it found that the majority of credit unions and caisses populaires in the province do not have compliant deposit insurance messaging.
The regulator’s deposit insurance program protects insurable deposits held by Ontario credit unions and caisses populaires. FSRA is releasing updates to its Deposit Insurance Coverage for Ontario Credit Unions and Caisses Populaires website and brochure content.
Specifically, the update includes the following statement: “The liability of FSRA to insure deposits held at Ontario credit unions is limited to the assets of the Deposit Insurance Reserve Fund.”
FSRA says all credit unions that hold member deposits are required to display and distribute the updated brochure.
“A recent review of Ontario credit union website content identified that deposit insurance information displayed is not presented in accordance with the requirements of the rule,” they write, referring to the regulator’s Credit Union Deposit Insurance Advertising Rule.
The review further found that 55 per cent of credit unions do not properly present the required FSRA decal, 22 per cent do not provide a functional link to FSRA information about deposit insurance and 82 per cent present non-compliant deposit insurance messaging.
“FSRA requires all Ontario credit unions and caisses populaires to review their current deposit insurance advertising practices, including all electronic and print messaging, to ensure that they are compliant with the rule.”