The Financial Services Regulatory Authority of Ontario (FSRA) has published new guidance for credit unions’ codes of conduct, processes and policies for interacting with customers.
Under new legislation, credit unions will be expected to adopt new market conduct frameworks that address issues such as conflicts of interest, mis-selling, tied selling, misrepresentation and disclosure, and complaint handling, among other things.
The guidance sets out that credit unions should prioritize their customers’ interests, promote consistent conduct standards, and establish clear accountability for the implementation and oversight of these frameworks.
“A credit union must have an appropriate governance structure, compliance program, as well as controls and policies in place, for its board to objectively assess adherence with the credit union’s code of market conduct,” the guidance said.
Non-compliance can lead to supervisory action from the regulator.
While the guidance is in effect immediately, credit unions have until March 31, 2022 to implement their frameworks. They have until March 31, 2023 to complete a compliance self-assessment and report to their boards.