Canada Gazette, Part I, Volume 159, Number 23: MISCELLANEOUS NOTICES
June 7, 2025
ABCU CREDIT UNION LTD.
NOTICE PURSUANT TO THE DISCLOSURE ON CONTINUANCE REGULATIONS (FEDERAL CREDIT UNIONS)
Date: May 24, 2025
To: Members of ABCU Credit Union Ltd.
On June 25, 2025, the members of ABCU Credit Union Ltd. (“ABCU”) will vote on a special resolution to authorize ABCU to make an application to become a federal credit union under the Bank Act, followed by an immediate amalgamation with Innovation Federal Credit Union (“Innovation”). Members of ABCU are invited to consider the information in this Notice before voting. Votes will be submitted electronically at a special meeting on June 25, 2025.
In accordance with the Disclosure on Continuance Regulations (Federal Credit Unions) [the “Regulations”], this Notice is provided to inform ABCU members of changes to deposit insurance coverage that would apply to their eligible deposits held with ABCU in the event that ABCU becomes a federal credit union and, on that same day, a member of the Canada Deposit Insurance Corporation (“CDIC”).
Deposit insurance automatically applies to eligible deposits held at financial institutions that are members of deposit insurance protection agencies. It is designed to protect certain deposits in case the financial institution holding them fails.
Deposits held with ABCU are currently insured by the Credit Union Deposit Guarantee Corporation (“CUDGC”), which insures deposits held at credit unions incorporated in Alberta. If ABCU obtains the necessary member and regulatory approvals and becomes a federal credit union, it will automatically become a member of the CDIC and CUDGC deposit insurance coverage will cease to apply. The CDIC insures deposits held by its member institutions, which include banks, federal credit unions, and trust and loan companies.
What is covered in this Notice
In accordance with the Regulations, this Notice provides information regarding certain changes that will come into effect if ABCU becomes a federal credit union. Specifically, this Notice includes the following:
- Continuation day: information about the day on which current CUDGC deposit insurance coverage for deposits held with ABCU would end and CDIC deposit insurance coverage would begin;
- Current CUDGC deposit insurance coverage: a description of the CUDGC coverage that currently applies to deposits held with ABCU;
- Transitional CDIC coverage: a description of the CDIC coverage that would apply during the transition period to pre-existing deposits held with ABCU; and
- Standard CDIC coverage: a description of the CDIC coverage that would apply after the transition period to deposits held with ABCU and how this coverage differs from the pre-continuance CUDGC deposit insurance coverage applicable to ABCU.
Additional information will be provided to ABCU members regarding the special resolution to authorize an application to become a federal credit union followed by an immediate amalgamation with Innovation.
This information is also available at any ABCU branch and by visiting the merger information web page.
The information includes examples to help members understand the changes to deposit insurance coverage.
Important qualifications
The information included in this Notice is current as of the date of this Notice. Deposit insurance coverage offered by CUDGC and/or the CDIC may change in the future. If there are material changes to deposit insurance coverage offered by CUDGC and/or the CDIC before and if ABCU becomes a federal credit union and amalgamates with Innovation, ABCU may revise this Notice accordingly.
The publication of this Notice and a positive vote by the members of ABCU to apply to become a federal credit union and immediately amalgamate with Innovation do not guarantee that approval will be granted by Canada’s Minister of Finance and other regulatory bodies or that becoming a federal credit union will occur on the dates referenced in this Notice or in any other document or that it will occur under the conditions stated in this Notice or in any other document.
Continuation day
The continuation day is the date that ABCU would become a federal credit union and amalgamate with Innovation. This date would be indicated in the letters patent of continuance and letters patent of amalgamation issued by Canada’s Minister of Finance. On the continuation day, ABCU will become a member of CDIC and on the same day, CUDGC deposit insurance will no longer apply to deposits held by ABCU, including to those deposits not eligible for CDIC coverage. Instead, CDIC deposit insurance will apply to deposits held by ABCU that are eligible for CDIC coverage.
As of the publication date of this Notice, ABCU has not submitted an application to continue as a federal credit union followed by an immediate amalgamation with Innovation, and the federal Minister of Finance has not rendered a decision on ABCU’s continuation as a federal credit union followed by an immediate amalgamation with Innovation, nor has there been any indication of approval to occur in the future.
Current Credit Union Deposit Guarantee Corporation (CUDGC) deposit insurance coverage
Until the continuation day, the full amount of deposits held with ABCU, including accrued interest, is insured by CUDGC as described in Table 1. The insurance applies to all forms of personal, business and trust deposits held in Alberta credit unions. The insurance covers all deposits in Alberta credit unions regardless of membership, citizenship, or residence of the depositor.
| Deposits held in one name | Deposits held in more than one name (joint Accounts) | Deposits in a Trust Account | Deposits in an RRSP | Deposits in an RRIF | Deposits in a TFSA | Deposits in an FHSA | |
|---|---|---|---|---|---|---|---|
| Savings accounts table a1 note a | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Chequing accounts table a1 note a | Yes | Yes | Yes | Not applicable | Not applicable | Not applicable | Not applicable |
| GIC and other terms regardless of length to maturity table a1 note a table a1 note † | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Money orders, certified cheques, traveller’s cheques, drafts, and prepaid letters of credit in respect of which a credit union is primarily liable | Yes | Yes | Yes | Not applicable | Not applicable | Not applicable | Not applicable |
Table a1 note(s)
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Note: Deposits fully insured
What is not covered by CUDGC deposit insurance
- (1) membership shares issued by a credit union;
- (2) investment shares issued by a credit union;
- (3) securities and shares issued by other corporations;
- (4) mutual funds;
- (5) bonds, notes, treasury bills, and debentures issued by governments or corporations;
- (6) money orders, certified cheques, traveller’s cheques, debentures, drafts, and prepaid letters of credit in respect of which a credit union is not primarily liable; and
- (7) the return on index-linked term deposits before it is paid to the credit union, safety deposit box contents and other securities held for safekeeping.
Transitional CDIC Coverage
Starting on the continuation day, deposit insurance coverage for deposits previously held with ABCU would be covered by the CDIC so long as deposits are eligible for CDIC coverage. CUDGC deposit insurance would no longer apply, including to those deposits not eligible for CDIC coverage.
A transition period would begin on the continuation day. During this transition period, any “pre-existing deposits” — deposits that were made with ABCU before it became a federal credit union and amalgamated with Innovation and that remain outstanding on the continuation day — would be insured by the CDIC to the same extent as the current CUDGC deposit insurance coverage described above. During this period, CDIC deposit insurance coverage would not apply to
- deposits that are payable outside Canada;
- deposits in respect of which the Government of Canada is a preferred claimant;
- traveller’s cheques; and
- investments in non-equity shares and declared but unpaid dividends on those shares.
The transition period for pre-existing demand deposits would end 180 days after the continuation day. In the case of a pre-existing deposit that is to be repaid on a fixed day (i.e. a term deposit or a GIC), the transition period would end on the maturity date or when it is cashed out. For example, and bearing in mind the above-noted exceptions to CDIC coverage, if the continuation day were January 1, 2026, any eligible pre-existing deposit that is not for a fixed period would have unlimited coverage until June 29, 2026, inclusive, minus any amount withdrawn from the eligible pre-existing deposits during this period. Any eligible pre-existing deposit that is for a fixed term, bearing in mind the above-noted exceptions to CDIC coverage, would have unlimited coverage until the end of that fixed term.
The CDIC transitional coverage does not apply to deposits that are made with ABCU/Innovation on or after the continuation day. During the transition period, these deposits would be treated as separate deposits from any pre-existing deposits and would be covered in accordance with the CDIC standard deposit insurance coverage that is described in the next section.
Once the transition period ends, the CDIC standard deposit insurance coverage that is described in the next section would apply to all eligible deposits with ABCU/Innovation. For the purpose of determining deposit insurance coverage per insurance category, eligible pre-existing deposits would be combined with eligible deposits made on or after the continuation day.
Standard CDIC coverage
The CDIC’s standard deposit insurance coverage would apply to all eligible deposits that are made with ABCU/Innovation after the continuation day. This is the same deposit insurance coverage that applies to all CDIC member institutions.
There are certain differences between the deposit insurance coverage provided by the CDIC and CUDGC:
- Coverage limit: The CDIC provides deposit insurance coverage for all eligible deposits up to a maximum amount of $100,000 for each of the categories, in each of its member institutions (please refer to Table 2). This means that, if you have deposits in more than one category, you will be insured for up to $100,000 in each of those categories, for each CDIC member institution. CUDGC provides deposit insurance for the full amount of the deposits.
- Investments in non-equity shares: CDIC does not provide deposit insurance coverage for money invested in non-equity shares.
- Traveller’s cheques: CDIC does not provide deposit insurance coverage for traveller’s cheques.
- Government of Canada as a preferred claimant: The CDIC does not provide deposit insurance coverage for deposits in respect of which the Government of Canada is a preferred claimant. No such restriction is expressed in respect of CUDGC deposit insurance.
| Deposits held in one name | Deposits held in Joint Accounts | Deposits in a Trust Account | Deposits in an RRSP | Deposits in an RRIF | Deposits in a TFSA | Deposits in an FHSA | Deposits in RESP | Deposits in RDSP | |
|---|---|---|---|---|---|---|---|---|---|
| Savings accounts (including foreign currency deposits) | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Chequing accounts (including foreign currency deposits) | Yes | Yes | Yes | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable |
| GIC and other term deposits table a2 note a (regardless of term to maturity) | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Money orders, certified cheques, bank drafts, and prepaid letters of credit in respect of which a CDIC member institution is primarily liable | Yes | Yes | Yes | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable |
| Debentures issued as proof of deposit for CDIC member institutions (other than banks) | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Table a2 note(s)
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Note: Deposits insured up to $100,000 (principal and interest combined) per category listed above. Must be payable in Canada.
What is not covered by standard CDIC deposit insurance coverage
- (1) membership shares issued by a federal credit union;
- (2) any shares issued by a federal credit union;
- (3) debentures issued by a federal credit union;
- (4) deposits not payable in Canada;
- (5) shares issued by other corporations;
- (6) mutual funds;
- (7) traveller’s cheques;
- (8) bonds, notes, treasury bills, and debentures issued by governments or corporations;
- (9) money orders, certified cheques, drafts, and prepaid letters of credit in respect of which a federal credit union is not primarily liable;
- (10) principal protected notes (with some exceptions);
- (11) safety deposit box contents; and
- (12) securities held for safekeeping.
Questions
Specific examples of how transitional coverage works are available on the ABCU Credit Union Ltd. website.
If you have any questions on deposit insurance, you can also visit the following websites:
PROSPERA CREDIT UNION
NOTICE PURSUANT TO THE DISCLOSURE ON CONTINUANCE REGULATIONS (FEDERAL CREDIT UNIONS)
Date: May 17, 2025
To: Members of Prospera Credit Union
Members of Prospera Credit Union (“Prospera”) will vote on a special resolution that authorizes Prospera to apply to become a federal credit union under the Bank Act and, immediately thereafter, amalgamate with Coast Capital Savings Federal Credit Union (“Coast Capital Savings”) and Sunshine Coast Credit Union (subject to authorization from its members) [the “Federal Amalgamation Transaction”] to form an amalgamated federal credit union (the “Amalgamated Federal Credit Union”). Members of Prospera should consider the information contained in this Notice before voting on the Federal Amalgamation Transaction.
Pursuant to the Disclosure on Continuance Regulations (Federal Credit Unions) [the “Regulations”], this Notice is provided to inform Prospera members of changes to deposit insurance that would apply to their eligible deposits held with Prospera in the event that the Federal Amalgamation Transaction is completed.
Deposit insurance is designed to protect eligible deposits in case the financial institution holding them fails. Deposit insurance automatically applies to eligible deposits held at a financial institution as long as that financial institution is a member of, or is otherwise covered by, a deposit protection agency.
Deposits held with Prospera are currently insured by the Credit Union Deposit Insurance Corporation of British Columbia (“CUDIC”), which insures deposits held at credit unions that are incorporated in British Columbia (B.C.). If all member and necessary regulatory approvals are obtained and the Federal Amalgamation Transaction is completed, the Amalgamated Federal Credit Union will automatically become a member of the Canada Deposit Insurance Corporation (“CDIC”) and CUDIC deposit insurance will cease to apply to the deposits formerly held with Prospera.
What this notice covers
In accordance with the Regulations, this Notice provides information regarding certain changes that will come into effect if Prospera completes the Federal Amalgamation Transaction. Specifically, this Notice includes information on
- the day on which CUDIC deposit insurance coverage for deposits held with Prospera would end and CDIC deposit insurance coverage would begin;
- CUDIC coverage that currently applies to deposits held with Prospera;
- CDIC coverage that would apply during the transition period to pre-existing deposits held with the Amalgamated Federal Credit Union; and
- CDIC coverage that would apply after the transition period to deposits held with the Amalgamated Federal Credit Union and how this coverage differs from the pre-continuance CUDIC deposit insurance coverage applicable to Prospera prior to its completion of the Federal Amalgamation Transaction.
In addition to this Notice, information regarding the special resolution to authorize Prospera to undertake the Federal Amalgamation Transaction, resulting in the change from CUDIC coverage to CDIC coverage, is included in the member package prepared by Prospera in connection with the special resolution votes. This information is also available at any Prospera branch or by visiting the powerthefuture website. Prospera has included examples to help members understand the changes to deposit insurance coverage and members should review this information in connection with their vote.
Important qualifications
The information included in this Notice is current as of the date of this Notice. Deposit insurance coverage offered by CUDIC and/or CDIC may change in the future. If there are material changes to deposit insurance coverage offered by CUDIC and/or CDIC before, and if, the Federal Amalgamation Transaction is completed, Prospera may revise this Notice accordingly.
Prospera’s members and Sunshine Coast Credit Union’s members will each vote on special resolutions that authorize their respective organizations to undertake the Federal Amalgamation Transaction. Coast Capital Savings’ members will vote on a special resolution that authorizes the amalgamation. Subject to all necessary regulatory approvals, the amalgamation will proceed if members from at least two of the three credit unions vote in favour, as long as one is Coast Capital Savings. Only the credit unions whose members vote in favour of the amalgamation will move forward with regulatory applications to become federal credit unions and immediately amalgamate with Coast Capital Savings.
The publishing of this Notice and a positive vote by the members of Prospera to pursue the Federal Amalgamation Transaction do not guarantee that approval will be granted by Canada’s Minister of Finance and other regulatory bodies or that the Federal Amalgamation Transaction will occur on the dates referenced in this Notice or in any other document or that it will occur under the conditions stated in this Notice or in any other document.
As of the publication date of this Notice, Prospera has not submitted an application to undertake the Federal Amalgamation Transaction, and the Canadian Minister of Finance has not rendered a decision on the matter, nor has there been any indication of approval to occur in the future.
What happens on continuation and amalgamation day
The continuation and amalgamation day is the date Prospera (and, assuming its members vote in favour, Sunshine Coast Credit Union) would become federal credit unions and immediately amalgamate with Coast Capital Savings. This date would be indicated in the Letters Patent of Continuance and Letters Patent of Amalgamation issued by Canada’s Minister of Finance. On the continuation and amalgamation day, CUDIC deposit insurance will no longer apply to deposits held with Prospera, including to those deposits not eligible for CDIC coverage. Instead, CDIC deposit insurance will apply to deposits held with the Amalgamated Federal Credit Union that are eligible for CDIC coverage.
Deposits to which CUDIC deposit insurance currently applies
Until the continuation and amalgamation day, the full amount of eligible deposits held with Prospera, including accrued interest, in any currency, is covered by CUDIC’s deposit insurance as described in Table 1.
| Deposits held in one name | Deposits in a trust account | Deposits in an RRSP | Deposits in an RRIF | Deposits in a TFSA | Deposits in a FHSA | Deposits in a RESP | Deposits in a RDSP | Deposits in more than one name (joint deposits) | |
|---|---|---|---|---|---|---|---|---|---|
| Savings accounts (including foreign currency deposits) | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Chequing accounts (including foreign currency deposits) | Yes | Yes | N/A | N/A | N/A | N/A | N/A | N/A | Yes |
| GIC and other term deposits (including foreign currency deposits, and regardless of term to maturity) | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Non-equity shares table b1 note a and declared but unpaid dividends on such shares | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Money orders, certified cheques, traveller’s cheques, debentures, bank drafts and prepaid letters of credit in respect of which a credit union is primarily liable | Yes | Yes | N/A | N/A | N/A | N/A | N/A | N/A | Yes |
Table b1 note(s)
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What is not covered by CUDIC deposit insurance?
CUDIC deposit insurance does not apply to all financial instruments or securities held with Prospera. Specifically, the following are not covered by CUDIC deposit insurance:
- membership shares issued by a credit union;
- equity shares issued by a credit union;
- shares issued by other corporations;
- mutual funds, including money market funds;
- bonds, notes, treasury bills and debentures issued by governments or corporations;
- money orders, certified cheques, traveller’s cheques, debentures, drafts and prepaid letters of credit in respect of which a credit union is not primarily liable;
- principal-protected notes;
- safe deposit boxes;
- RRSP equity plans;
- non-equity shares issued by a B.C. credit union after January 1, 2020, including declared but unpaid dividends on such non-equity shares;
- deposits made by savings institutions (unless it is a brokered deposit where no savings institution has any beneficial interest in the deposit);
- Exchange Traded Funds (ETFs); and
- cryptocurrencies.
About transitional CDIC insurance coverage
Starting on the continuation and amalgamation day, deposits held with the Amalgamated Federal Credit Union would be covered by CDIC deposit insurance so long as those deposits are eligible for CDIC coverage. On the continuation and amalgamation day, CUDIC deposit insurance would no longer apply, including to those deposits not eligible for CDIC coverage.
A transition period would begin on the continuation and amalgamation day. During the transition period, any “pre-existing” deposits — deposits that were made with Prospera before the continuation and amalgamation day and that remain outstanding on such day that are eligible under CDIC’s deposit insurance coverage — would be insured by CDIC to the same extent as the current CUDIC deposit insurance coverage described above. On completion of the amalgamation on the continuation and amalgamation day, these deposits will become deposits with the Amalgamated Federal Credit Union.
During the transition period, CDIC deposit insurance coverage would not apply to the following:
- deposits that are payable outside of Canada;
- deposits in respect of which the Government of Canada is a preferred claimant;
- investments in non-equity shares and declared but unpaid dividends on those shares; and
- traveller’s cheques.
The transition period for pre-existing demand deposits would end 180 days after the continuation and amalgamation day. In the case of a pre-existing deposit that is to be repaid on a fixed day (i.e. a term deposit or a GIC), the transition period would end on the maturity date or when it is cashed out.
For example, and keeping in mind the exceptions to CDIC coverage noted in this Notice, if the continuation and amalgamation day was January 1, 2026, any eligible pre-existing deposit that is not for a fixed period would have unlimited coverage until June 29, 2026, inclusive, less any amounts withdrawn during this period. Any eligible pre-existing deposit that is for a fixed term, keeping in mind the exceptions to CDIC coverage noted in this Notice, would have unlimited coverage until the end of that fixed term.
CDIC transitional coverage does not apply to deposits made with the Amalgamated Federal Credit Union on or after the continuation and amalgamation day. If a deposit is made with the Amalgamated Federal Credit Union during the transition period, the deposit would be treated as a separate deposit from any pre-existing deposits and would be covered by the standard CDIC deposit insurance described below. The CDIC transitional coverage also does not apply to any deposits held with Coast Capital Savings prior to the amalgamation because Coast Capital Savings is currently a CDIC member institution.
Once the transition period ends, the CDIC standard deposit insurance coverage described in the next section would apply to all CDIC eligible deposits held with the Amalgamated Federal Credit Union. For the purpose of determining deposit insurance coverage per insurance category, eligible pre-existing deposits held with Prospera (together with pre-existing deposits held with Sunshine Coast Credit Union, if it were also completing the Federal Amalgamation Transaction with Prospera and Coast Capital Savings) would be combined with eligible deposits made on or after the continuation and amalgamation day and any eligible deposits made with Coast Capital Savings prior to the continuation and amalgamation day.
About standard CDIC insurance coverage
CDIC eligible deposits made with the Amalgamated Federal Credit Union on or after the continuation and amalgamation day would be covered by CDIC’s standard insurance coverage. This CDIC coverage is the same for all CDIC member institutions.
Below is a summary of certain differences between the insurance coverage provided by CDIC and CUDIC:
- Coverage limit: Eligible deposits currently held with Prospera are subject to CUDIC’s insurance coverage and CUDIC provides deposit insurance for the full amount of the eligible deposit. Eligible deposits held with CDIC member institutions are subject to CDIC’s deposit insurance coverage and CDIC provides deposit insurance to a maximum of $100,000 (including principal and interest) for each of the categories, in each of its member institutions (categories are summarized in Table 2). This means that, if you have deposits in more than one category, you will be insured for up to $100,000 in each of those categories, for each CDIC member institution. The Amalgamated Federal Credit Union will be a single CDIC member institution and all eligible deposits in each category with the Amalgamated Federal Credit Union will be covered up to this maximum, regardless of the number of accounts, except for the additional coverage described in this Notice that is provided for pre-existing deposits during the transition period.
- Government of Canada as a preferred claimant: CDIC does not provide deposit insurance coverage for deposits in respect of which the Government of Canada is a preferred claimant. No such restriction is expressed in respect of CUDIC deposit insurance.
- Investments in non-equity shares: CDIC does not provide deposit insurance coverage for money invested in non-equity shares. CUDIC provides insurance coverage for money invested in non-equity shares and dividends declared on such shares that have not been paid (“non-equity shares” are those issued by a credit union prior to January 1, 2020). Also, note that credit union membership shares and equity shares are not insured by either CUDIC or CDIC.
- Traveller’s cheques: CDIC does not provide deposit insurance coverage for traveller’s cheques. CUDIC provides insurance coverage for traveller’s cheques in respect of which a credit union is primarily liable.
| Deposits held in one name | Deposits in a trust account | Deposits in an RRSP | Deposits in an RRIF | Deposits in a TFSA | Deposits in a FHSA | Deposits in a RESP | Deposits in a RDSP | Deposits in more than one name (joint deposits) | |
|---|---|---|---|---|---|---|---|---|---|
| Savings accounts (including foreign currency deposits) | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Chequing accounts (including foreign currency deposits) | Yes | Yes | N/A | N/A | N/A | N/A | N/A | N/A | Yes |
| GIC and other term deposits (including foreign currency deposits, and regardless of term to maturity) | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Money orders, certified cheques, bank drafts and prepaid letters of credit in respect of which a CDIC member institution is primarily liable | Yes | Yes | N/A | N/A | N/A | N/A | N/A | N/A | Yes |
| Debentures issued as proof of deposit for CDIC member institutions (other than banks) | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
What is not covered by CDIC insurance coverage?
- membership shares issued by a federal credit union;
- any shares issued by a federal credit union;
- debentures issued by a federal credit union;
- deposits not payable in Canada;
- shares issued by other corporations;
- mutual funds;
- traveller’s cheques;
- bonds, notes, treasury bills, and debentures issued by governments or corporations;
- money orders, certified cheques, drafts, and prepaid letters of credit in respect of which a federal credit union is not primarily liable;
- principal-protected notes (with some exceptions);
- safe-deposit box contents;
- securities held for safekeeping;
- Exchange Traded Funds (ETFs); and
- cryptocurrencies.
Questions
More information on deposit insurance may be found at
SUNSHINE COAST CREDIT UNION
NOTICE PURSUANT TO THE DISCLOSURE ON CONTINUANCE REGULATIONS (FEDERAL CREDIT UNIONS)
Date: May 17, 2025
To: Members of Sunshine Coast Credit Union
Members of Sunshine Coast Credit Union (“SCCU”) will vote on a special resolution that authorizes SCCU to apply to become a federal credit union under the Bank Act and, immediately thereafter, amalgamate with Coast Capital Savings Federal Credit Union (“Coast Capital Savings”) and Prospera Credit Union (subject to authorization from its members) [the “Federal Amalgamation Transaction”] to form an amalgamated federal credit union (the “Amalgamated Federal Credit Union”). Members of SCCU should consider the information contained in this Notice before voting on the Federal Amalgamation Transaction.
Pursuant to the Disclosure on Continuance Regulations (Federal Credit Unions) [the “Regulations”], this Notice is provided to inform SCCU members of changes to deposit insurance that would apply to their eligible deposits held with SCCU in the event that the Federal Amalgamation Transaction is completed.
Deposit insurance is designed to protect eligible deposits in case the financial institution holding them fails. Deposit insurance automatically applies to eligible deposits held at a financial institution as long as that financial institution is a member of, or is otherwise covered by, a deposit protection agency.
Deposits held with SCCU are currently insured by the Credit Union Deposit Insurance Corporation of British Columbia (“CUDIC”), which insures deposits held at credit unions that are incorporated in British Columbia. If all member and necessary regulatory approvals are obtained and the Federal Amalgamation Transaction is completed, the Amalgamated Federal Credit Union will automatically become a member of the Canada Deposit Insurance Corporation (“CDIC”) and CUDIC deposit insurance will cease to apply to the deposits formerly held with SCCU.
What this notice covers
In accordance with the Regulations, this Notice provides information regarding certain changes that will come into effect if SCCU completes the Federal Amalgamation Transaction. Specifically, this Notice includes information on
- the day on which CUDIC deposit insurance coverage for deposits held with SCCU would end and CDIC deposit insurance coverage would begin;
- CUDIC coverage that currently applies to deposits held with SCCU;
- CDIC coverage that would apply during the transition period to pre-existing deposits held with the Amalgamated Federal Credit Union; and
- CDIC coverage that would apply after the transition period to deposits held with the Amalgamated Federal Credit Union and how this coverage differs from the pre-continuance CUDIC deposit insurance coverage applicable to SCCU prior to its completion of the Federal Amalgamation Transaction.
In addition to this Notice, information regarding the special resolution to authorize SCCU to undertake the Federal Amalgamation Transaction, resulting in the change from CUDIC coverage to CDIC coverage, is included in the member package prepared by SCCU in connection with the special resolution votes. This information is also available at any SCCU branch or by visiting the powerthefuture website. SCCU has included examples to help members understand the changes to deposit insurance coverage and members should review this information in connection with their vote.
Important qualifications
The information included in this Notice is current as of the date of this Notice. Deposit insurance coverage offered by CUDIC and/or CDIC may change in the future. If there are material changes to deposit insurance coverage offered by CUDIC and/or CDIC before, and if, the Federal Amalgamation Transaction is completed, SCCU may revise this Notice accordingly.
SCCU’s members and Prospera Credit Union’s members will each vote on special resolutions that authorize their respective organizations to undertake the Federal Amalgamation Transaction. Coast Capital Savings’ members will vote on a special resolution that authorizes the amalgamation. Subject to all necessary regulatory approvals, the amalgamation will proceed if members from at least two of the three credit unions vote in favour, as long as one is Coast Capital Savings. Only the credit unions whose members vote in favour of the amalgamation will move forward with regulatory applications to become federal credit unions and immediately amalgamate with Coast Capital Savings.
The publishing of this Notice and a positive vote by the members of SCCU to pursue the Federal Amalgamation Transaction do not guarantee that approval will be granted by Canada’s Minister of Finance and other regulatory bodies or that the Federal Amalgamation Transaction will occur on the dates referenced in this Notice, or in any other document, or that it will occur under the conditions stated in this Notice or in any other document.
As of the publication date of this Notice, SCCU has not submitted an application to undertake the Federal Amalgamation Transaction, and the Canadian Minister of Finance has not rendered a decision on the matter, nor has there been any indication of approval to occur in the future.
What happens on continuation and amalgamation day
The continuation and amalgamation day is the date SCCU (and, assuming its members vote in favour, Prospera Credit Union) would become federal credit unions and immediately amalgamate with Coast Capital Savings. This date would be indicated in the Letters Patent of Continuance and Letters Patent of Amalgamation issued by Canada’s Minister of Finance. On the continuation and amalgamation day, CUDIC deposit insurance will no longer apply to deposits held with SCCU, including to those deposits not eligible for CDIC coverage. Instead, CDIC deposit insurance will apply to deposits held with the Amalgamated Federal Credit Union that are eligible for CDIC coverage.
Deposits to which CUDIC deposit insurance currently applies
Until the continuation and amalgamation day, the full amount of eligible deposits held with SCCU, including accrued interest, in any currency, is covered by CUDIC’s deposit insurance as described in Table 1.
| Deposits held in one name | Deposits in a trust account | Deposits in an RRSP | Deposits in an RRIF | Deposits in a TFSA | Deposits in a FHSA | Deposits in a RESP | Deposits in a RDSP | Deposits in more than one name (joint deposits) | |
|---|---|---|---|---|---|---|---|---|---|
| Savings accounts (including foreign currency deposits) | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Chequing accounts (including foreign currency deposits) | Yes | Yes | N/A | N/A | N/A | N/A | N/A | N/A | Yes |
| GIC and other term deposits (including foreign currency deposits, and regardless of term to maturity) | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Non-equity shares table b3 note a and declared but unpaid dividends on such shares | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Money orders, certified cheques, traveller’s cheques, debentures, bank drafts and prepaid letters of credit in respect of which a credit union is primarily liable | Yes | Yes | N/A | N/A | N/A | N/A | N/A | N/A | Yes |
Table b3 note(s)
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What is not covered by CUDIC deposit insurance?
CUDIC deposit insurance does not apply to all financial instruments or securities held with SCCU. Specifically, the following are not covered by CUDIC deposit insurance:
- membership shares issued by a credit union;
- equity shares issued by a credit union;
- shares issued by other corporations;
- mutual funds, including money market funds;
- bonds, notes, treasury bills and debentures issued by governments or corporations;
- money orders, certified cheques, traveller’s cheques, debentures, drafts and prepaid letters of credit in respect of which a credit union is not primarily liable;
- principal-protected notes;
- safe deposit boxes;
- RRSP equity plans;
- non-equity shares issued by a British Columbia credit union after January 1, 2020, including declared but unpaid dividends on the non-equity shares;
- deposits by savings institutions (unless it is a brokered deposit where no savings institution has any beneficial interest in the deposit);
- Exchange Traded Funds (ETFs); and
- cryptocurrencies.
About transitional CDIC insurance coverage
Starting on the continuation and amalgamation day, deposits held with the Amalgamated Federal Credit Union would be covered by CDIC deposit insurance so long as those deposits are eligible for CDIC coverage. On the continuation and amalgamation day, CUDIC deposit insurance would no longer apply, including to those deposits not eligible for CDIC coverage.
A transition period would begin on the continuation and amalgamation day. During the transition period, any “pre-existing” deposits — deposits that were made with SCCU before the continuation and amalgamation day and that remain outstanding on such day that are eligible under CDIC’s deposit insurance coverage — would be insured by CDIC to the same extent as the current CUDIC deposit insurance coverage described above. On completion of the amalgamation on the continuation and amalgamation day, these deposits will become deposits with the Amalgamated Federal Credit Union.
During the transition period, CDIC deposit insurance coverage would not apply to the following:
- deposits that are payable outside of Canada;
- deposits in respect of which the Government of Canada is a preferred claimant;
- investments in non-equity shares and declared but unpaid dividends on those shares; and
- traveller’s cheques.
The transition period for pre-existing demand deposits would end 180 days after the continuation and amalgamation day. In the case of a pre-existing deposit that is to be repaid on a fixed day (i.e. a term deposit or a GIC), the transition period would end on the maturity date or when it is cashed out.
For example, and keeping in mind the exceptions to CDIC coverage noted in this Notice, if the continuation and amalgamation day was January 1, 2026, any eligible pre-existing deposit that is not for a fixed period would have unlimited coverage until June 29, 2026, inclusive, less any amounts withdrawn during this period. Any eligible pre-existing deposit that is for a fixed term, keeping in mind the exceptions to CDIC coverage noted in this Notice, would have unlimited coverage until the end of that fixed term.
CDIC transitional coverage does not apply to deposits made with the Amalgamated Federal Credit Union on or after the continuation and amalgamation day. If a deposit is made with the Amalgamated Federal Credit Union during the transition period, the deposit would be treated as a separate deposit from any pre-existing deposits and would be covered by the standard CDIC deposit insurance described below. The CDIC transitional coverage also does not apply to any deposits held with Coast Capital Savings prior to the amalgamation because Coast Capital Savings is currently a CDIC member institution.
Once the transition period ends, the CDIC standard deposit insurance coverage described in the next section would apply to all CDIC eligible deposits held with the Amalgamated Federal Credit Union. For the purpose of determining deposit insurance coverage per insurance category, eligible pre-existing deposits held with SCCU (together with pre-existing deposits held with Prospera Credit Union, if it were also completing the Federal Amalgamation Transaction with SCCU and Coast Capital Savings) would be combined with eligible deposits made on or after the continuation and amalgamation day and any eligible deposits made with Coast Capital Savings prior to the continuation and amalgamation day.
About standard CDIC insurance coverage
CDIC eligible deposits made with the Amalgamated Federal Credit Union on or after the continuation and amalgamation day would be covered by CDIC’s standard insurance coverage. This CDIC coverage is the same for all CDIC member institutions.
Below is a summary of certain differences between the insurance coverage provided by CDIC and CUDIC:
- Coverage limit: Eligible deposits currently held with SCCU are subject to CUDIC’s insurance coverage and CUDIC provides deposit insurance for the full amount of the eligible deposit. Eligible deposits held with CDIC member institutions are subject to CDIC’s deposit insurance coverage and CDIC provides deposit insurance to a maximum of $100,000 (including principal and interest) for each of the categories, in each of its member institutions (categories are summarized in Table 2). This means that, if you have deposits in more than one category, you will be insured for up to $100,000 in each of those categories, for each CDIC member institution. The Amalgamated Federal Credit Union will be a single CDIC member institution and all eligible deposits in each category with the Amalgamated Federal Credit Union will be covered up to this maximum, regardless of the number of accounts, except for the additional coverage described in this Notice that is provided for pre-existing deposits during the transition period.
- Government of Canada as a preferred claimant: CDIC does not provide deposit insurance coverage for deposits in respect of which the Government of Canada is a preferred claimant. No such restriction is expressed in respect of CUDIC deposit insurance.
- Investments in non-equity shares: CDIC does not provide deposit insurance coverage for money invested in non-equity shares. CUDIC provides insurance coverage for money invested in non-equity shares and dividends declared on such shares that have not been paid (“non-equity shares” are those issued by a credit union prior to January 1, 2020). Also, note that credit union membership shares and equity shares are not insured by either CUDIC or CDIC.
- Traveller’s cheques: CDIC does not provide deposit insurance coverage for traveller’s cheques. CUDIC provides insurance coverage for traveller’s cheques in respect of which a credit union is primarily liable.
| Deposits held in one name | Deposits in a trust account | Deposits in an RRSP | Deposits in an RRIF | Deposits in a TFSA | Deposits in a FHSA | Deposits in a RESP | Deposits in a RDSP | Deposits in more than one name (joint deposits) | |
|---|---|---|---|---|---|---|---|---|---|
| Savings accounts (including foreign currency deposits) | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Chequing accounts (including foreign currency deposits) | Yes | Yes | N/A | N/A | N/A | N/A | N/A | N/A | Yes |
| GIC and other term deposits (including foreign currency deposits, and regardless of term to maturity) | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Money orders, certified cheques, bank drafts and prepaid letters of credit in respect of which a CDIC member institution is primarily liable | Yes | Yes | N/A | N/A | N/A | N/A | N/A | N/A | Yes |
| Debentures issued as proof of deposit for CDIC member institutions (other than banks) | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
What is not covered by CDIC insurance coverage?
- membership shares issued by a federal credit union;
- any shares issued by a federal credit union;
- debentures issued by a federal credit union;
- deposits not payable in Canada;
- shares issued by other corporations;
- mutual funds;
- traveller’s cheques;
- bonds, notes, treasury bills, and debentures issued by governments or corporations;
- money orders, certified cheques, drafts, and prepaid letters of credit in respect of which a federal credit union is not primarily liable;
- principal-protected notes (with some exceptions);
- safe-deposit box contents;
- securities held for safekeeping;
- Exchange Traded Funds (ETFs); and
- cryptocurrencies.
Questions
More information on deposit insurance may be found at
TRAFALGAR INSURANCE COMPANY OF CANADA
ASSUMPTION REINSURANCE AGREEMENT
Notice is hereby given, in accordance with the provisions of subsection 254(2) of the Insurance Companies Act (Canada) [the “Act”], that Trafalgar Insurance Company of Canada (“TIC”) intends to make an application to the Minister of Finance (Canada) [the “Minister”], on or after July 8, 2025, for the Minister’s approval to cause itself to be reinsured, on an assumption basis, against substantially all of its policy liabilities, by Belair Insurance Company Inc. (“Belair”).
A copy of the proposed assumption reinsurance agreement will be available for inspection by the policyholders of TIC during regular business hours at the head office of TIC located at 700 University Avenue, Suite 1500-A, Toronto, Ontario M5G 0A1, for a period of 30 days following publication of this notice.
Any policyholder who wishes to obtain a copy of the proposed assumption reinsurance agreement may do so by writing to TIC at the above-noted address.
Toronto, June 7, 2025
Trafalgar Insurance Company of Canada