Regulatory Statement

Purpose

This regulatory statement (statement) establishes the filing requirement and form, and specifies filing intervals, for the Capital Adequacy Return (CAR) from B.C. credit unions, beginning January 2027.

Effective January 1, 2027, this statement (including the related CAR template and reporting instructions) repeals and replaces Regulatory Statement 21-006: Capital Adequacy Return (CAR). Credit unions are required to complete and file the CAR (using the linked CAR template and reporting instructions) annually, and monthly or quarterly as required, beginning with the January 2027 reporting period for monthly reporting and the March 2027 reporting period for quarterly reporting.

Background information

The Minister of Finance consented to adopt the Credit Union Capital Requirements Rules (rules) that update the capital framework for credit unions. The rules will come into effect on January 1, 2027. In conjunction, CAR reporting is revised to align with the rules. This statement reflects updates to the form of CAR, and the power relied on to specify CAR reporting.

Filing requirements

Under Sections 127(1) and 127(3)(a) of the Financial Institutions Act (FIA), the Superintendent of Financial Institutions (superintendent) requires all credit unions (including Central 1 Credit Union but excluding Stabilization Central Credit Union) to file the CAR annually as a return, and on a monthly or quarterly basis (based on credit union asset size) as a financial affairs report.

Due dates and frequency

Credit unions with up to and including $500 million in assets are required to submit the CAR quarterly within 20 days of each quarter. Credit unions with more than $500 million in assets are required to submit the CAR monthly within 20 days of each month end. All credit unions are required to submit the CAR annually within 90 days of the credit union’s fiscal year end.

Two CARs must be submitted for the credit union’s fiscal year end: the monthly (or quarterly) and the annual. The annual CAR is the same as the monthly or quarterly report, but the information reported is based on the audited consolidated financial statements of the credit union at fiscal year end. Credit unions reporting the CAR quarterly must produce the CAR with increased frequency or report monthly, if requested to do so by BC Financial Services Authority (BCFSA).

The credit union’s total assets for the purpose of the $500 million total assets threshold are based on assets reported in the Financial and Statistical Return (FSR) at the credit union’s most recent fiscal year end. When a credit union’s assets cross the $500 million threshold, it has one fiscal year to implement the requirements of its new category. For example, if the credit union’s total assets are greater than the $500 million threshold, as at its December 2027 fiscal year end, the credit union must submit the CAR monthly starting January 2029.

Completion of the CAR

The CAR must be prepared for the credit union on a consolidated basis using the CAR reporting template provided by BCFSA. Line numbers, fields, descriptions, or other aspects of the template must not be altered and accordingly, these features are locked.

The CAR should closely reconcile to the FSR, and discrepancies should be explainable. Credit unions should refer to the FSR reporting instructions for further definitions and descriptions of financial statement items.

Amounts must be reported in Canadian dollars and rounded to the nearest dollar. Foreign currency amounts must be converted to the Canadian dollar equivalent at the reporting date. Percentages must be rounded to two decimal places (or four decimal places if in decimal format).

Instructions for filing of the CAR

The completed CAR must be filed with the superintendent by submitting electronically in Excel format through BCFSA’s Integrated Regulatory Information System (IRIS): Login | BCFSA.

Late Filing

Late submissions of the CAR may result in an administrative penalty under Section 253.1 of the FIA and the Administrative Penalties Regulation, as described in BCFSA’s Non-Compliant Filings Administrative Penalty (NFAP) Guideline. Credit unions should notify BCFSA as soon as possible of expected delays in their CAR submission.

Legislation

FIA, ss. 127(1), 127(3)(a), 253.1
Administrative Penalties Regulation

Copies of the legislation are available from www.bclaws.gov.bc.ca.

Resource links

1. CAR Template 
2. CAR Reporting Instructions 

Other information

For questions on completion and submission of the CAR, please email filings@bcfsa.ca.