Significant changes are being made to the Financial Institutions Act and Credit Union Incorporation Act
A more efficient and modern regulatory framework is the aim of significant changes to key pieces of financial legislation in British Columbia.
The provincial government says that the changes to the Financial Institutions Act and Credit Union Incorporation Act will strengthen regulation to add protection to the financial interests of British Columbians.
Between them, the two acts provide the regulatory frameworks for credit unions, insurance companies and intermediaries, and trust companies; and the framework for incorporation and corporate governance of credit unions.
“The financial world moves quickly, and British Columbia needs a modern system where our financial regulators, like the Financial Institutions Commission, have the tools to respond quickly to new and emerging risks,” said Carole James, Minister of Finance. “British Columbians can feel confident knowing that these updates will better protect their financial interests today and into the future.”
The government is required to review the legislation every ten years and the changes will bring BC in line with international best practices, and is consistent with federal standards, as well as legislation in Alberta, Saskatchewan and Manitoba.
The updates will also provide credit unions and insurance companies with more flexibility to use technology in ways that provide better service and protect consumers.
BC Financial Services Authority
The legislation will bolster the tools available to the BC Financial Services Authority, a new Crown agency that incorporates FICOM, the Financial Institutions Commission. It will have similar tools to the BC Securities Commission.
“We welcome the introduction of this important legislation for consumers and financial service providers in British Columbia,” said Blair Morrison, CEO and superintendent of financial institutions at FICOM. “This legislation is foundational to FICOM’s transition to the B.C. Financial Services Authority, a modern, effective and efficient regulator of B.C.’s rapidly changing financial services sector.”
