Credit Union Amalgamation Notices and Fairstone Move

Summary#

This Canada Gazette notice (published May 17, 2025) records two separate items. One is a change of address for a designated office of Fairstone Bank of Canada for service of enforcement notices. The other two are member notices from Prospera Credit Union and Sunshine Coast Credit Union about a proposed move to federal status and a planned amalgamation with Coast Capital Savings, and how that could change deposit insurance for members.

What it does#

• Fairstone Bank of Canada: updates the designated office for service of enforcement notices to an address in Toronto (listed in the Gazette). This is an administrative location change.
• Prospera Credit Union and Sunshine Coast Credit Union: each published a notice under the Disclosure on Continuance Regulations (Federal Credit Unions) explaining what would happen to deposit insurance if they become federal credit unions and immediately amalgamate with Coast Capital Savings (the proposed “Federal Amalgamation Transaction”).
  • If the amalgamation goes ahead, deposits now insured by Credit Union Deposit Insurance Corporation of British Columbia (CUDIC) would instead be insured by the Canada Deposit Insurance Corporation (CDIC) from the “continuation and amalgamation day.”
  • During a transition period that begins on that day, some existing deposits made before the change (called “pre-existing deposits”) would receive temporary CDIC protection that matches current CUDIC coverage. The transition for demand deposits ends after 180 days; term deposits are covered until their maturity.
  • After the transition, standard CDIC rules apply. A key difference is that CDIC insures eligible deposits up to $100,000 (principal plus interest) per insurance category per member institution, while CUDIC currently insures the full amount of eligible deposits at these B.C. credit unions.
  • The notices list types of accounts and instruments that are and are not covered under each insurer (for example, some non‑equity shares and traveller’s cheques are covered by CUDIC but not by CDIC).
  • The notices make clear these are member votes and informational disclosures only. As of the notice date, Prospera and Sunshine Coast Credit Union had not yet submitted an application and no regulatory approval had been given.

Who's affected#

• Members and depositors of Prospera Credit Union and Sunshine Coast Credit Union — especially anyone with large balances or holdings in types of products treated differently by CUDIC and CDIC.
• Customers of Coast Capital Savings may also be affected if the amalgamation proceeds (their institution is already a CDIC member).
• People holding instruments that are insured under CUDIC but not under CDIC (examples include certain non‑equity shares and some traveller’s cheques).
• Parties who need to serve or receive enforcement notices involving Fairstone Bank of Canada — they should note the new designated office location.

Why it matters#

• The main practical change is insurance coverage: under the proposed plan some deposits that were fully covered by CUDIC could become limited to $100,000 per CDIC category after the transition. That could affect people with more than $100,000 in a single CDIC category at the merged institution.
• There is a temporary safety net for existing deposits (the transition period, including 180 days for demand deposits), but new deposits made after the continuation day follow the standard CDIC limits right away.
• Members who will vote on the amalgamation should review the notices and the member materials to understand how their specific accounts and products are treated before voting.
• The notices do not mean the amalgamation is approved or final. The change in insurance only happens if the credit unions’ members vote in favour and the relevant federal approvals are granted.