Ontario financial regulator to provide $500M credit facility to PACE Credit Union

A photo of PACE credit union in Mississauga. Google Streetview

TORONTO — Ontario’s financial regulator will provide a $500-million credit facility to help PACE Credit Union continue operations.

The Financial Services Regulatory Authority of Ontario took control of the credit union when it was placed under administration in September 2018 by FSRA’s predecessor, the Deposit Insurance Corp. of Ontario.

The regulator appointed David Finnie as PACE’s chief executive late last year.

Read more: Ontario government creating new regulator for financial services, pensions

FSRA says it’s providing the credit facility in an effort to give the credit union members confidence that PACE has more than adequate financial resources to continue operations without interruption. It says this will protect PACE depositors against unexpected adverse events.

The regulator has also decided to reduce the capital requirements for the credit union to allow it to continue to operate.

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To protect members, PACE must avoid taking deposits that are not insured and arrange for uninsured deposits to be repaid. It must also stop dividend payments and restrict investment share redemptions and employee bonuses.

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