Regulations
Co-operatives operating in Ontario are primarily governed by the Co-operative Corporations Act (commonly referred to as the 'Act'). The Financial Services Corporation of Ontario (FSCO) is an agency of the Ministry of Finance and is the body primarily responsible for regulating the co-operative sector (including Credit Unions). However, Credit Unions in Ontario are subject to different legislation: the Credit Unions and Caisses Populaires Act 1994. The Deposit Insurance Corporation of Ontario (DICO) is another relevant body that provides deposit insurance for financial co-operatives.
The Ontario Co-operative Association (On Co-op) has a Regulations and Legislation Committee that consists of co-operative sector representatives and various types of professionals who work with co-ops (lawyers, accountants and co-operative developers).
This committee is responsible for identifying potential changes to the legislation and regulations that govern co-ops and to advocate for these changes with the provincial government. Members of this committee meet quarterly with representatives of our regulating body, the Financial Services Commission of Ontario (FSCO) in addition to representatives from the Ministry of Finance. These meetings are used to discuss operational and regulatory issues for co-operatives, discuss proposed changes to the Co-operative Corporations Act and to maintain a good working relationship with the government bodies that are responsible for regulating co-operatives.
When necessary, On Co-op and its Regs and Legs Committee will execute sector-wide consultations to foster discussion and consensus about proposed changes to the Act. The latest consultation (in late 2010), addressed proposals to change Par Value Shares and the 50% rule. More information on this consultation and its results can be found under "related pages" in the right sidebar of this page. You will also find links to helpful downloads regarding co-op legislation in Ontario, as well as an order form for the "Guide to Ontario's Co-operative Corporations Act" (2012 edition), which presents the requirements of the Act in plain, accessible language.
