• About
  • Offices
  • Careers
  • News
  • Students
  • Alumni
  • Payments
  • FR
Background Image
Bennett Jones Logo 100 Years
  • People
  • Expertise
  • Knowledge
  • Search
  • FR Menu
  • Search Mobile
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
View all
Practices
Corporate Litigation Regulatory Tax View all
Industries
Capital Projects Energy Funds & Finance Mining View all
Advisory
Crisis & Risk Management ESG Strategy and Solutions Governmental Affairs & Public Policy
View Client Work
International Experience
Insights News Events
New Energy Economy Series Business Law Talks Podcast Economic Outlook
ESG & the CIO Subscribe
Bennett Jones Centennial Menu
People
Practices
Industries
Advisory Services
Client Work
About
Offices
News
Careers
Insights
Law Students
Events
Search
Alumni
Payments
Subscribe

Stay informed on the latest business and legal insights and events.

LinkedIn LinkedIn Twitter Twitter Vimeo Vimeo
 
Blog

OSFI Suspends Compliance Expectations Against Use Of "Bank Words" by Credit Unions, and Solicits Consultation

August 14, 2017

Written By Simon Grant

Provincially-regulated credit unions that use “bank words” to describe products or services (such as “online banking”) will be relieved to hear that the Office of the Superintendent of Financial Institutions (OSFI) has “suspended” the compliance expectations set out in the OSFI directive that we reported on in July. That directive set out OSFI’s interpretation of the Bank Act’s prohibition in section 983 against the use of bank words by non-banks, and required that non-banks, such as provincially regulated credit unions and fintech companies, cease using bank words to describe their business on websites or other electronic media by December 31, 2017, on print materials by June 30, 2018, and on physical signs by June 30, 2019.

Those compliance expectations have now been suspended, OSFI announced in a news release of August 11, 2017, pending the outcome of the second-stage consultation paper on the federal financial sector framework that was just released by the Department of Finance. In the consultation paper, the Department of Finance seeks views on several points, one which is whether prudentially-regulated non-bank deposit-taking institutions (such as credit unions) should be given flexibility to use terms such as “bank” or “banking” to describe their services.  The Department of Finance has requested that submissions in response to the consultation paper be received by September 29, 2017.

This will be welcome news for credit unions. However, fintechs and other companies should note that the consultation paper does not consider relaxing the prohibition against the use of bank words by entities other than prudentially-regulated deposit-taking institutions. The prohibitions set out in section 983 of the Bank Act against the use of bank words by non-banks remain in effect.

Download PDF

Author

  • Simon  Grant Simon Grant, Partner

Fall 2022 Economic Outlook: Managing Risks and Taking Action

Related Links

  • Insights
  • Media
  • Subscribe

Recent Posts

Blog

Blueberry River First Nation, Treaty 8 First Nations [...]

January 30, 2023
       

Blog

Requisitioning the Closure of Open Building Permits

January 30, 2023
       

Blog

Field Notes: Recent Pesticide Initiatives in Canada

January 26, 2023
       

Blog

Canada Border Services Agency Publishes Update of [...]

January 25, 2023
       

Blog

Balancing Act: Facilitating Trade and Worker Protection [...]

January 18, 2023
       
Bennett Jones Centennial Footer 100 Years
Bennett Jones Centennial Footer 100 Years
About
  • Leadership
  • Diversity
  • Community
  • Innovation
  • Security
  • History
Offices
  • Calgary
  • Edmonton
  • Montréal
  • Ottawa
  • Toronto
  • Vancouver
  • New York
Connect
  • Insights
  • News
  • Events
  • Careers
  • Students
  • Alumni
Subscribe

Stay informed on the latest business and legal insights and events.

LinkedIn LinkedIn Twitter Twitter Vimeo Vimeo
© Bennett Jones LLP 2023. All rights reserved.
  • Privacy Policy
  • Disclaimer
  • Terms of Use
Logo Bennett Jones