FSRA removes credit union director

The Financial Services Regulatory Authority of Ontario has issued an order to remove the director and board chair of a credit union for repeated failure to submit requested information.

Last week, the regulator removed Gary Brown as director of Toronto-based Rapport Credit Union, an enforcement order said.

The order followed a notice of intention last month to remove Brown due to repeated failure to provide statutorily required information requested by the regulator.

Credit unions must provide FSRA with information necessary to the supervisory process, such as information on “board governance, strategy and plans to ensure continuing financial health of the credit union, reflected in adequate liquidity and strong capital to mitigate any shortfalls and unexpected losses,” the regulator said in a release about its action in the matter.

In an email, a FSRA spokesperson said the board chair’s removal was a “specific and rare occurrence.” 

The board of Rapport Credit Union did not respond to a request for comment.

In response to the notice, Brown and Rapport provided submissions to the regulator (as is their right) that Brown shouldn’t be removed, the release said. FSRA issued its order after considering the submissions.

“Mr. Brown’s refusal or failure to provide information required by FSRA caused Rapport to be in breach of section 199 of the [Credit Unions and Caisses Populaires Act],” the regulator said in the release.

Subsequently, and pursuant to the act, “FSRA determined that it is in the best interests of Rapport’s members that Mr. Brown be removed as a director,” the regulator said.

It added that Rapport “continues to be financially stable,” and member deposits continue to be insured through the Deposit Insurance Reserve Fund administered by the regulator.

Rapport and Brown may appeal the order.