Credit-union continuance and Fairstone address change

Summary#

• This Canada Gazette entry (published May 17, 2025) contains two short notices.
• One says Fairstone Bank of Canada moved a designated office for service of enforcement notices. The others are member notices from Prospera Credit Union and Sunshine Coast Credit Union about how deposit insurance would change if they become federal credit unions and immediately amalgamate with Coast Capital Savings.

What it does#

• Fairstone Bank of Canada: updates the designated office address used for the service of enforcement notices under the Support Orders and Support Provisions (Banks and Authorized Foreign Banks) Regulations.
• Prospera Credit Union and Sunshine Coast Credit Union: each published a notice under the Disclosure on Continuance Regulations (Federal Credit Unions) to explain what would happen to members’ deposit insurance if they complete a planned “continuance” to federal status and immediate amalgamation with Coast Capital Savings (the “Federal Amalgamation Transaction”):
  • If the transaction goes ahead, deposits now insured by the Credit Union Deposit Insurance Corporation of British Columbia (CUDIC) would no longer be covered by CUDIC on the continuation and amalgamation day. Instead, the merged institution would be a member of the Canada Deposit Insurance Corporation (CDIC).
  • A transition period would apply to “pre-existing” deposits (deposits made before the continuation and still outstanding on that day). During this period, CDIC would insure those pre-existing deposits to the same extent as CUDIC previously did, with some exceptions.
  • After the transition period, CDIC’s standard rules apply. CDIC’s main difference from CUDIC is a coverage cap of $100,000 (principal plus interest) per eligible category, per member institution.
  • The transition rules include that pre-existing demand deposits get extended protection for 180 days after the continuation and amalgamation day; fixed-term deposits remain covered until maturity. Example given in the notice: if the continuation day were January 1, 2026, certain pre-existing demand deposits would have protection until June 29, 2026.
  • The notices list types of accounts and instruments that CUDIC covers today and note which of those are not covered by CDIC (for example, some non-equity shares and traveller’s cheques).

Who's affected#

• Members and depositors of Prospera Credit Union and Sunshine Coast Credit Union — especially anyone with:
  • large balances that exceed $100,000 in a single CDIC insurance category, or
  • holdings in instruments that CUDIC currently insures but CDIC does not (for example certain non-equity shares or traveller’s cheques).
• Members of Coast Capital Savings may be indirectly affected because the merged institution would be a single CDIC member.
• Legal representatives or others who serve enforcement notices will be affected by Fairstone Bank of Canada’s office relocation.
• It is unclear from the notice exactly when (or if) the continuation and amalgamation will occur; the changes only take effect if all member votes and regulatory approvals happen.

Why it matters#

• The biggest practical change is deposit insurance. Under CUDIC some eligible deposits are insured for the full amount. After a successful continuance and amalgamation, CDIC rules would apply and have a $100,000 limit per eligible category. That could reduce protection for people who keep large sums or certain kinds of credit-union-specific investments at these credit unions.
• The transition period gives temporary protection for deposits made before the change — up to 180 days for demand deposits and until maturity for term deposits — which matters if you plan to move large amounts around the change date.
• The notices are informational to members and do not mean the transaction is approved. As of publication, the credit unions had not submitted the government applications and approval by the Minister of Finance and regulators was not guaranteed.
• The Fairstone address change is an administrative detail but matters to anyone who needs to serve enforcement documents on the bank.