Coops and Credit Unions


Notice — On 1 January 2020, a new Credit Unions Act and a new Cooperatives Act came into effect.

The modernized Credit Unions Act restructures the regulatory framework and streamlines responsibilities, eliminates duplication and reduces the regulatory burden and costs to credit unions. FCNB is now responsible for the front-line regulation of credit unions. The former stabilization fund and the former deposit insurance fund are now combined into a single deposit protection fund that is administered by the New Brunswick Credit Union Deposit Insurance Corporation. The amount of deposit insurance remains unchanged at $250,000 per eligible deposit.

Credit unions have until 30 June 2021 to work with FCNB and their membership to amend their by-laws and their policies and procedures with a view of ensuring compliance with the requirements of the new Act.

The modernized Cooperatives Act gives cooperatives more independence and will reduce administrative red tape. It gives cooperatives the ability to issue several classes of shares and integrate technology into their processes. The special needs of housing and worker cooperatives have been incorporated. Provisions also exist to help improve governance. 

Existing cooperatives will have 18 months after the new Act comes into force to file with the Director of cooperatives:

  • articles of amendment
  • notice of registered office and notice of directors
  • have their by-laws updated to meet the new criteria outlined in the legislation
  • have said by-laws adopted and approved by extraordinary resolution of the members

 

The Financial Institutions Division facilitates the legal framework that permits credit unions and cooperatives to provide goods and services to their members.

 

What is a Cooperative?


A cooperative (coop) is an association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise. The Cooperatives Act of New Brunswick regulates the incorporation of coops in the province.  

What is a Credit Union?

A credit union is a financial institution that provides savings, credit and other financial products and services to its members. Credit unions are cooperatives – they are owned and operated by members and profits are shared among owners.  They are governed by a volunteer board of directors elected from their membership.

After you make your first deposit in a credit union, you become a member. All members are equal owners in the credit union and have a vote in electing the board members.

Are deposits in New Brunswick Credit Unions insured?


When you make a deposit in a New Brunswick Credit Union it is protected by:


  1. The Credit Union. The Credit Union Act requires that each credit union maintain a minimum level of equity to protect against any financial losses.

  2. The New Brunswick Credit Union Deposit Insurance Corporation (NBCUDIC).  NBCUDIC is a Crown corporation governed by the provisions of the Credit Unions Act. Its mission under the Act is threefold. First, it protects people who have eligible deposits with a credit union in New Brunswick by providing deposit insurance against loss. NBCUDIC guarantees up to $250,000 repayment of all eligible deposits held at New Brunswick credit unions, including accrued interest. Second, it protects credit unions against financial losses and insolvency by establishing and maintaining a deposit protection fund. And finally, it provides financial assistance to credit unions for the purpose of stabilization.

To learn more about how your eligible deposits are protected, visit the New Brunswick Credit Union Deposit Insurance Corporation online.

Print this page
Address


Financial and Consumer Services Commission

85 Charlotte Street, Suite 300

Saint John, NB

E2L 2J2

Phone
Social









As a regulatory agency, FCNB cannot provide financial advice or legal advice, but we can help you get the information and resources. 

2017 © Financial and Consumer Services Commission