The Securities Commission has issued a decision regarding the application of Central 1 Credit Union for revocation and replacement of a previous decision due to a change in its primary non-securities regulator. The previous decision, dated March 13, 2019, exempted Central 1 Credit Union from certain registration and prospectus requirements under securities legislation for the issuance of evidences of deposit and shares to its members. This exemption was conditional on the institution being regulated by the Financial Institutions Commission of British Columbia (FICOM).
Since November 1, 2019, the BC Financial Services Authority (BCFSA) has replaced FICOM as the primary regulator for non-securities related matters. Central 1 Credit Union sought to update the decision to reflect this change, extend the expiry date, and continue the exemptions under the same terms and conditions.
The Commission granted the exemption based on several factors, including that Central 1 Credit Union is a central credit union governed by the Credit Union Incorporation Act (British Columbia) and the Financial Institutions Act (British Columbia), and is subject to comprehensive prudential regulation and supervision by the BCFSA. The institution is also a reporting issuer in multiple Canadian jurisdictions and provides services to members who are incorporated organizations.
The decision exempts Central 1 Credit Union from the dealer registration requirement, the adviser registration requirement, and the prospectus requirement in respect of the issuance of evidences of deposit and shares to its members and auxiliary members, subject to certain conditions. These conditions include that Central 1 Credit Union continues to be governed by the relevant British Columbia legislation, remains subject to BCFSA regulation, restricts its membership to incorporated organizations, and limits its activities to those permitted by its governing legislation.
The exemption is granted with a sunset clause, meaning it will terminate five years from the date of the decision. The relevant legislative provisions cited include the Securities Act, R.S.O. 1990, c. S.5, as amended, sections 25, 53, 74, and 144.