Deal to save PACE goes ahead

A deal to rescue PACE Savings and Credit Union Ltd. and transfer the bulk of its assets and operations to Alterna Savings and Credit Union Ltd. has been completed, the Financial Services Regulatory Authority of Ontario (FSRA) reports.

The regulator, which took control of PACE in 2018 amid allegations of misconduct at the firm, announced in April that it had reached a deal for Alterna to acquire PACE’s loan portfolios, deposit accounts and branches.

The regulator confirmed on Wednesday that the deal, which was subject to certain approvals and closing conditions, has now been consummated.

“This transaction provides PACE members with enhanced stability, access to expanded banking services and a more certain future as part of Alterna,” FSRA said in a release. “As PACE’s administrator, we believe this represents the best possible outcome for PACE members in the circumstances.”

“PACE members will continue to be supported by PACE staff, who become Alterna Savings employees as part of this transaction,” Alterna noted in a release.

The terms of the transaction have not been disclosed.

The remnants of PACE and assets that weren’t part of the arrangement with Alterna remain subject to a court-supervised liquidation process.

Previously, FSRA said it would “continue to vigorously pursue legal claims against the former senior management and certain former directors of PACE, as well as others, to recover damages and losses caused by their mismanagement.”

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.