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Email this8:00 pm
December 12, 2009
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Further to this discussion thread, which reported on the Ontario government's plans to have the Financial Services Regulatory Authority of Ontario ("FSRA Ontario") to replace both of the Deposit Insurance Corporation of Ontario ("DICO") and the Financial Services Commission of Ontario ("FSCO") with a single, unified provincial agency performing both regulatory functions (ostensibly with some sort of Deposit Insurance Fund of the FSRA) with a single board of directors and executive management team, as at June 8, 2019, having received Royal Assent and the Ontario government enacting the legislation by regulation, FSRA Ontario has confirmed that they're now doing that. At least on an interim basis, the FSCO and DICO website content will be maintained on the websites of the now former agencies but FSRA is working expeditiously to consolidate the content onto its new website, which has now been more fulsomely developed since my last update.
For those curious to see the version of the bill that received Royal Assent, it is Bill 100 - Protecting What Matters Most Act (Budget Measures), 2019, an omnibus Budget 2019-20 implementation bill, whereby amendments are provided at Schedule 16 of the bill.
So, we can now say that Ontario credit union deposits are insured, to applicable limits, by FSRA Ontario. 
Cheers,
Doug
8:32 am
January 18, 2018
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The name DICO was way better. You can't even pronounce FSRA as a word.
9:08 am
October 21, 2013
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I hope it isn't significant that they've removed the word "insurance" from the title.
10:09 am
December 20, 2016
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Loonie said
I hope it isn't significant that they've removed the word "insurance" from the title.
Loonie,
It's reminiscent of when they changed the name of Kentucky Fried Chicken to KFC....making it ambiguous as to what exactly you were getting..
Stephen
12:57 pm
December 12, 2009
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All great points, some with humourous effect, made by @jacnel, @Loonie, and @Nehpets (Stephen).
@jacnel Agreed that it doesn't have a phonetic ring to it like "DICO" (as in "DEE-KO"), but in some ways, it kind of sounds more official, like it packs more of a regulatory "punch" (sort of like the DGCM or CDIC) - for better or for worse. 😉
@Loonie Astute observation! Practically speaking, though, deposits will definitely be insured by FSRA Ontario, likely through a restricted Deposit Insurance Fund that FSRA will regulate and its board, or an appointed board sub-committee on deposit insurance, will oversee. It'll definitely mean more words are required to explain the concept that Ontario incorporated credit unions are regulated by FSRA Ontario and their deposits are insured, to applicable limits, through the deposit insurance fund that FSRA administers. On the other hand, even DGCM in Manitoba is called the Deposit Guarantee Corporation of Manitoba despite considerable question and disagreement as to whether DGCM's liabilities constitute a contingent liability of the Province of Manitoba, on either a practical and/or a legal level.
@Nehpets (Stephen) LOL, very true! Let's hope credit union sales reps don't become as greasy as the rebranded KFC "chicken." 😉
Cheers,
Doug
4:26 pm
October 21, 2013
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Doug said
@jacnel Agreed that it doesn't have a phonetic ring to it like "DICO" (as in "DEE-KO")
Actually, all the credit union employees I've spoken to about DICO, as well as the owner of GICWealth deposit brokers, pronounce it "dye-co", although I would have called it "dee-co" myself.
It's moot now, but I know you pay attention to such details.
No, I don't really think they will drop the insurance, but one does wonder. It reminds me not so much of KFC, although I see the point, but of businesses that go through mergers and acquisitions and keep both names and tell us everything will be the same for both partners' businesses so as not to lose customers. And, then, a few years later, everything has changed after all. The only one I can think of at the moment is Enterprise car rental. They bought up Autoshare, a Toronto-based car-sharing business a couple of years ago and said nothing would change. Now, of course, quite a bit has changed, including the name, fees, and staff!
5:28 am
March 30, 2017
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I assume / hope no change to the $250k deposit guarantee/insurance ?
8:55 am
October 21, 2013
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No changes yet, and I don't expect any as they were recently revised after a lengthy process. But you never know with the current government as they've done all kinds of things nobody expected. I think they've got bigger problems to deal with right now than fiddling with the insurance.
6:09 pm
December 12, 2009
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Correct. I don't expect any change to deposit insurance limits, though they might tinker around the margins (similar to CDIC's deposit insurance changes to go into effect April 30, 2020, next year).
In practice, while the name changes, this doesn't amount to much (though there might be opportunity to eliminate some redundant positions and streamline their internal operations).
Interesting, @Loonie, that it's often pronounced DYE-CO...being from B.C., it just seems logical to call it DEE-KO, but can see how they came up with that pronunciation. Now we have...FSRAO. FISH-ROW? 
Cheers,
Doug
7:41 pm
October 21, 2013
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Hmmm. Fish all lined up in a 'row", orfish having a "row" (fight)?
Any province that can call its insurance corp ICKY-BICKY would undoubtedly be comfortable with DEE-KO. lOL - at least that was the custom when I lived there.
10:01 am
December 12, 2009
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Loonie said
Hmmm. Fish all lined up in a 'row", orfish having a "row" (fight)?Any province that can call its insurance corp ICKY-BICKY would undoubtedly be comfortable with DEE-KO. lOL - at least that was the custom when I lived there.
Oh, hadn't thought of the metaphor in that way, @Loonie. I was thinking of fish row as in fish eggs, like a garnish (i.e., caviar). 😉
Aahahaha I have never pronounced I-C-B-C in that way (which is how we pronounce it, that is, by each letter).
Cheers,
Doug
2:00 pm
October 21, 2013
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I believe the eggs are called "roe", so I was confused.
It was icky-bicky when I lived in BC in the '70s, but perhaps it was a term of derision. I can't remember now.
5:35 pm
December 12, 2009
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Loonie said
I believe the eggs are called "roe", so I was confused.It was icky-bicky when I lived in BC in the '70s, but perhaps it was a term of derision. I can't remember now.
Ah, you're probably right on both counts. In the former, truthfully, I didn't know how to spell fish roe so just went with the row I know. (Yes, I know I should've used said "row I knew," but I liked that the grammatically incorrect way rhymed. It happens so rarely.)
On the latter, (a) you're likely right about it being a term of derision, but I wouldn't know this as the 1970s pre-date me (I was born in 1983, if you're curious) and (b) I didn't know you lived out in B.C.! Did you like it and do you ever miss it? You could've had a Surrey Metro Savings Credit Union, kept it active, and then had a Coast Capital Savings Federal Credit Union today.
Cheers,
Doug
6:38 pm
October 21, 2013
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I loved it. Would have stayed there forever if I'd had my druthers, but difficult decisions were required. Don't remember where we banked. Have been back many times. What I miss the most: smell of western cedar, the view at English Bay, early Spring in lower mainland and the islands, the Cowichan, trees, and the richness of the Okanagan. I didn't even mind the endless rain in January.
Cedars in Ontario have no aroma; very sad!
3:33 pm
September 30, 2017
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(September 6, 2022) Important updates Credit Unions and Caisses Populaires need to be aware of
The liability of FSRA to insure deposits held at Ontario credit unions is limited to the assets of the Deposit Insurance Reserve Fund. (DIRF)
... think I need to put unlimited or maximum coverage amount into this perspective.
5:16 pm
April 6, 2013
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The FSRA statement is new. But, the situation is not.
The provincial governments don't guarantee the liabilities of the provincial credit union deposit insurers. Manitoba has made that explicit for years.
10:37 am
November 15, 2018
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Does a rating agency follow/rate the FSRA/DIRF fund? I am trying via google to get more info but have had no luck other than generic stuff. I did find that similar agencies in other provinces are far ahead in bps as a % of covered deposits.
7:05 pm
April 6, 2013
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I haven't seen a rating agency, like DBRS, Fitch, or S&P, issue a rating for any of the provincial deposit insurers.
2:41 pm
October 17, 2018
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The latest financial statement is as of March 31 2020 which seems a bit odd to a layperson like me but it lists total cash on hand at 1.4million with total assets somewhere around 300 million.
Rough calculation leads me to believe that's enough for about 1400 clients who are at the limit. I'm a bit surprised this recent statement hasn't created a bit of unease on this site. Seems to me like there isn't enough in the cookie jar.
https://www.fsrao.ca/industry/credit-unions-and-caisses-populaires
Under "deposit Insurance"
8:39 pm
April 6, 2013
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It is quite reasonable for the Deposit Insurance Reserve Fund not to keep most of its $320 million funds in cash.
There's no immediate need for the $320 million. According to Note #3, about $250 million is in money market instruments and about $65 million is in a ladder of government bonds.
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