Credit unions de­cry ban on us­ing ‘bank­ing’ terms

The Guardian (Charlottetown) - - BUSINESS -

TORONTO — The na­tional group rep­re­sent­ing credit unions says its mem­bers are be­ing treated un­fairly by a fed­eral reg­u­la­tor that is pro­hibit­ing them from us­ing the terms “bank,” “banker” and “bank­ing” to de­scribe their ser­vices. The Cana­dian Credit Union As­so­ci­a­tion says the ban on the ter­mi­nol­ogy makes it dif­fi­cult for credit unions to com­pete fairly with banks.

The di­rec­tive was con­tained in an ad­vi­sory is­sued last Fri­day by the Of­fice of the Su­per­in­ten­dent of Fi­nan­cial In­sti­tu­tions (OSFI).

The as­so­ci­a­tion says it has in­ter­preted the ad­vi­sory to mean that any mem­ber who con­tin­ues to use th­ese terms can face crim­i­nal charges.

The group also notes that due to the changes, credit unions will have to re­move any bank­ing ref­er­ences from their ad­ver­tis­ing ma­te­ri­als and their web­sites - a move it called an “un­nec­es­sary and ex­pen­sive un­der­tak­ing.”

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