DICO placed Pace Credit Union under Administration due to governance issues | Page 5 | General financial discussion | Discussion forum

https://financialpost.com/fp-finance/banking/ontario-regulator-gives-pace-credit-union-500-million-lifeline

... so this news is PACE credit union, not PACE securities
... does this mean the deposit insurance is preparing to kick in ?

Norman1 said
According to the Globe & Mail article Ontario’s financial regulator gives PACE $500-million credit facility… that i_got_smucked_too mentioned, it doesn't look like deposit insurance needs to kick in.

PACE Credit Union seems to be still solvent. But, running below normal capital requirements.

As a condition of being allowed to run below normal capital levels, the credit union is to contact members with deposits above deposit insurance levels. Such deposits should either be reorganized so that they become insured or be returned to the member.  

I think registered deposits have an unlimited Ontario guarantee and non-registered deposits $250,000. So the any deposits above $250,000 will be returned to the member?

I think PACE CU will contact the member and see if the uninsured deposits can be reorganized so that they are insured.

The uninsured portion in a single account, for example, could be moved to the person's joint account. Otherwise, yes, the credit union would offer to return the uninsured portion.

The wording of the Globe & Mail article suggests that return would be offered. But, the member could decide to leave the uninsured funds in the credit union, for some reason.

COIN said
The reason might be because the interest rate on those deposits is much higher than the current rates. However, it is a risky scenario.  

That will be a pretty dumb move if still keep a deposit over the $250k under the current development.
Earn a penny to lose a buck...