August 14, 2017 (Surrey, BC) - Coast Capital Savings, Canada’s largest credit union by membership, announced today that the Financial Institutions Commission of British Columbia (FICOM) and the Credit Union Deposit Insurance Corporation (CUDIC) have approved its application for consent to continue as a federal credit union. The FICOM consent is subject to two conditions.
The FICOM and CUDIC consents are another historic moment for the BC-based credit union, as it follows on the heels of two significant member votes. In autumn 2016, 79.2% of the nearly 80,000 Coast Capital members who submitted a Special Resolution ballot, voted for Coast Capital to become a federal credit union. This was followed by another Special Resolution ballot in spring 2017 in which 85.4% of nearly 50,000 voting members agreed to amend Coast Capital’s credit union rules, allowing the credit union to align the rules with federal requirements. Today’s approvals complete one more step in the process Coast Capital is undertaking to become a federal credit union and expand across Canada.
“We are pleased with the commission’s decision,” said Don Coulter, President and CEO, Coast Capital Savings. “This will allow us to provide our signature services, like free chequing and local community support, to new members and to the friends and family of existing members, across the country. It also provides us with an opportunity to help enhance the financial well-being of more Canadians.”
Expanding outside of British Columbia will enable Coast Capital Savings to enter new markets and invest more resources into products and services that better serve its members’ growing online and mobile banking needs. It will also benefit Coast Capital employees by creating new job and career advancement opportunities and provide more Canadians with a friendly, co-operative alternative to national banks.
“We appreciate FICOM’s transparent and thorough analysis of our federal credit union application and for granting Coast Capital approval to move forward federally,” said Bill Cooke, Chair of the Board of Directors. “We look forward to working with FICOM as we transition out of the provincial regulatory regime.”
The next steps for Coast Capital Savings to be governed as a federal credit union are approvals from the Office of the Superintendent of Financial Institutions (OSFI) and the Federal Minister of Finance. Presently, Coast Capital is working with a number of regulatory bodies to ensure that it meets federal compliance standards. Until this occurs, Coast Capital remains a credit union organized under BC law and regulated by FICOM, and its members’ deposits continue to be insured by CUDIC.
The two conditions required by FICOM are:
- Condition 1 - Coast Capital Savings Credit Union will transfer deposits representing its mandatory liquidity held with Central 1 Credit Union pursuant to the Financial Institutions Act as follows:
- out of the mandatory liquidity pool held by Central 1 Credit Union;
- within 30 days of receiving Letters Patent to continue under the Bank Act, and
- pursuant to a plan accepted by the Commission by October 31, 2017.
More information about the conditional consent can be found in the FICOM Notice of Decision.
FICOM is a regulatory agency of the provincial Ministry of Finance and is responsible for administering six statutes that regulate the pension, mortgage broker and financial services sectors in British Columbia, including credit unions, insurance companies and trust companies.
The Credit Union Deposit Insurance Corporation (CUDIC), a statutory corporation, guarantees all deposits and non-equity shares of British Columbia credit unions as set out in the Financial Institutions Act.
About Coast Capital Savings
Coast Capital Savings is Canada’s largest credit union by membership. An Imagine Canada Caring Company, the credit union invested $5.6 million into local communities in 2016, focusing on empowering and engaging youth. Named a BC Top Employer in 2017, Coast Capital is also a member of Canada's Best Managed Companies Platinum Club. It has 52 branches serving its 543,000 members in the Metro Vancouver, Fraser Valley, Vancouver Island and Okanagan regions of British Columbia. Product innovations include Canada's first free chequing account from a full-service financial institution. To learn more, visit coastcapitalsavings.com.