Central and the credit unions of British Columbia are regulated by both provincial and federal statutes.
Central was incorporated under the former Credit Union Act of British Columbia and also holds a certificate under the Cooperative Credit Associations Act (Canada).
The Cooperative Credit Associations Act regulates such matters as Central's organization, powers, investments, lending and capital adequacy and is administered by the federal Superintendent of Financial Institutions.
The federal act gives Central access to funds from the Canada Deposit Insurance Corporation (CDIC). Under the act, CDIC is authorized to extend financial accommodation to central credit unions to meet their short-term requirements for liquid funds needed to discharge maturing debt obligations.
This provision facilitates Central's role as the liquidity manager for BC's credit union system.
Credit unions in British Columbia are incorporated under provincial legislation. They are authorized to carry on deposit business or both deposit and trust business under the Financial Institutions Act of British Columbia. The Act confers powers on credit unions such as the ability to lend, borrow and invest. It also specifies the amount and types of reserves they must maintain.
Provisions relating to credit union membership and shares are set out in the Credit Union Incorporation Act of British Columbia.
The Financial Institutions Act requires that each credit union have an audit committee and be audited by independent auditors. Credit unions are also subject to inspection by the Superintendent of Financial Institutions, an official of the Financial Institutions Commission, or his appointee. The Financial Institutions Commission regulates BC's financial institutions, including credit unions. The Commission is responsible to the provincial Minister of Finance.