The Corporation is the deposit guarantor for Saskatchewan credit unions, and the primary regulator for and Credit Union Central of Saskatchewan (SaskCentral), together, Provincially Regulated Financial Institutions or “PRFIs”.
The Corporation establishes regulatory requirements through the Standards of Sound Business Practice (the Standards) for credit unions, Prudential Standards for SaskCentral, and regulatory guidelines and directives for PRFIs. These requirements are an essential component of the Corporation’s deposit protection strategy.
New regulatory requirements, including the revision of existing ones, are generally driven by changes to legislation, and developments in the financial services industry and regulatory environment. New requirements may also become necessary due to issues or developments that necessitate providing PRFIs with information and/or clarity in the areas of corporate governance, the control environment, capital management, and financial and business practices. These requirements are generally modeled on industry-based requirements and time frames such as those established by the Office of the Superintendent of Financial Institutions (OSFI) in the federal jurisdiction.
PRFIs and other key stakeholders are provided with advance notice of the Corporation’s plans to issue regulatory requirements. Communication channels may include corporate publications, meetings, and other formal and informal communication.
The Corporation monitors an institution’s implementation of regulatory requirements through its supervisory review process. When an institution demonstrates elevated risk to depositors’ funds, the Corporation will conduct enforcement in a manner that aligns with its Supervisory Framework and Assessment Criteria.