New Legislation Provides Provincial Regulation for SaskCentral

GOVTThe government passed new legislation to transition regulation of SaskCentral from the federal government to Saskatchewan.

The Credit Union Central of Saskatchewan Act, 2016 appoints the Credit Union Deposit Guarantee Corporation (CUDGC) as the supervisor of SaskCentral, and assigns responsibility for oversight of CUDGC to the Financial and Consumer Affairs Authority’s Registrar of Credit Unions.  Recent changes to federal legislation require the province to assume responsibility for SaskCentral from the federal government by January 2017.

“The government is a strong supporter of credit unions and understands their importance to Saskatchewan’s farmers, small businesses and rural communities,” Justice Minister and Attorney General Gordon Wyant said.  “The Credit Union Deposit Guarantee Corporation and SaskCentral both have extensive experience in regulating and supporting credit unions, and we are confident this new relationship will be beneficial to Saskatchewan’s credit unions and their members.”

SaskCentral’s primary role is to support credit unions to better ensure they meet obligations to their members and provide credit unions access to national payment systems.  Under the new legislation, SaskCentral will maintain the business powers it had under federal regulation.

“We are pleased the government has worked closely with SaskCentral to develop the new legislation,” SaskCentral CEO Keith Nixon said.  “We are confident SaskCentral can continue to support Saskatchewan’s credit unions under this new legislation.”

This new legislation is intended to be at least as rigorous as the previous federal regulation.  Virtually every aspect of the federal Act has been carried over.  Additionally, the legislation contains provisions granting CUDGC additional regulatory oversight to monitor SaskCentral and protect the interests of members of Saskatchewan Credit Unions.

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