· Bill / Regulatory Framework Change · enacted
Bill 32 — Credit Union Act: New Regulatory Standards Exempt from Regulations Act
Establishes new powers for the Credit Union Deposit Guarantee Corporation to set standards and guidelines, including capital requirements, which are exempt from the Regulations Act but require Ministerial approval.
What changed
- Adds new sections 144.2 ('Standards and guidelines') and 145.1 ('Capital requirements standard') to the Credit Union Act.
- Authorizes the Credit Union Deposit Guarantee Corporation to establish standards and guidelines for credit unions, including capital requirements.
- Stipulates that these standards are exempt from the Regulations Act, meaning they do not undergo the same public review and legislative scrutiny as regulations.
- Requires the Corporation to submit capital requirements standards to the Minister for approval.
Why it matters
- Shifts regulatory authority for certain credit union standards from the traditional legislative/regulatory process to the Corporation, with Ministerial oversight.
- The exemption from the Regulations Act reduces public and legislative scrutiny of these new standards, potentially impacting transparency and accountability in the financial sector.
Other governance concerns
- Reduced public scrutiny of regulations
- Shift in regulatory authority
Primary sources (1)
- Primary sourceGovernment documentBill 32 – Financial Statutes Amendment Act, 2024 (No. 2) (Alberta Legislative Assembly)