Credit unions in Ontario derive their authorization under the provincial Credit Unions and Caisses Populaires Act 1994, which includes provisions related to credit union membership and shares.
Ontario credit unions are regulated through a comprehensive framework that involves the provincial Ministry of Finance, the Financial Services Commission of Ontario (FSCO), which is an arm's length agency of the Ministry of Finance, and the Deposit Insurance Corporation of Ontario (DICO), an agency of the province.
FSCO regulates registration of credit unions and caisses populaires under the Credit Unions and Caisses Populaires Act 1994. FSCO is responsible for ensuring that credit unions operate in accordance with the requirements of that Act.
DICO is responsible for overseeing compliance with solvency rules and for providing deposit insurance protection for deposits held in Ontario credit unions, up to prescribed limits. As part of this responsibility, DICO has the authority to issue by-laws to ensure that insured institutions operate in accordance with sound business and financial practices.