O. Reg. 120/14: GENERAL

Link to law: http://www.ontario.ca/laws/regulation/r14120
Published: 2014-05-01

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ontario regulation 120/14

made under the

Credit Unions and Caisses Populaires Act, 1994

Made: April 30, 2014
Filed: May 1, 2014
Published on e-Laws: May 2, 2014
Printed in The Ontario Gazette: May 17, 2014


Amending O. Reg. 237/09

(GENERAL)

1. (1) Subsection 105 (2) of Ontario Regulation 237/09 is amended by striking out “each credit union and league in accordance with this section” and substituting “each credit union and league for a financial year that begins on or after January 1, 2011 and before January 1, 2015 in accordance with subsection (3)”.

(2) Subsection 105 (4) of the Regulation is revoked.

(3) Subsection 105 (4.1) of the Regulation is amended by striking out “on or after January 1, 2011” and substituting “on or after January 1, 2011 and before January 1, 2015”.

(4) The heading of the Table to subsection 105 (4.1) of the Regulation is revoked and the following substituted:

TAble
Annual Premium for Financial Years beginning on or after January 1, 2011 and before january 1, 2015

(5) Section 105 of the Regulation is amended by adding the following subsections:

(4.2) The Corporation shall determine the differential premium score of each credit union and league for a financial year that begins on or after January 1, 2015 in accordance with subsection (4.3) and with the rules set out in the DICO Differential Premium Score Determination, dated March 31, 2014, as amended from time to time, and published by the Corporation in The Ontario Gazette on April 12, 2014.

(4.3) The differential premium score of a credit union or league at a particular time is determined with reference to the following components:

1. Capital: the level of regulatory capital of the credit union or league.

2. Corporate governance: the effectiveness of the governance practices of the credit union or league, as determined with reference to the Act and the by-laws of the Corporation.

(4.4) The annual premium payable by a credit union or league for a financial year that begins on or after January 1, 2015 is calculated as follows:

1. If the differential premium score of a credit union or league is 90 or over, its annual premium is $1.00 per $1,000 of the funds described in subsection (5) for a credit union and in subsection (6) for a league.

2. If the differential premium score of a credit union or league is 0, its annual premium is $3.00 per $1,000 of those funds.

3. If the differential premium score of a credit union or league is between 0 and 90, its annual premium is the rate per $1,000 of those funds calculated using the formula,

A = $1.75 - [B / 90 × $0.75]

in which,

  “A” is the rate, and

  “B” is the credit union or league’s differential premium score.

(6) Subsection 105 (9) of the Regulation is amended by striking out “subsections (4), (4.1) and (8)” and substituting “subsections (4.1), (4.4) and (8)”.

Commencement

2. This Regulation comes into force on the later of January 1, 2015 and the day it is filed.

 

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