Delegated Lending Authority Consultation

On March 21, 2023, BC Financial Services Authority (“BCFSA”) issued the Delegated Lending Authority Guideline (“Guideline”). The Guideline outlines BCFSA’s expectations for credit unions regarding the practice of delegated lending authority (“DLA”) to reduce the risk of conflicts of interest and minimize errors or fraud related to loan sales and approvals.

In order to ensure that credit unions have sufficient time to meet the expectations set out in the Guideline, the effective date for the Guideline is March 31, 2024.

Consultation Process

This consultation is now closed.

On October 11, 2022, BCFSA issued a draft Guideline, launching a 30-day consultation period to seek feedback from all B.C. credit unions.

During the consultation, BCFSA provided B.C. credit unions with opportunities to learn more and ask questions about the expectations outlined in the draft Guideline. All credit unions were invited to reach out to their BCFSA relationship manager or to contact BCFSA directly with any questions.

A number of credit unions provided feedback during the consultation, which is summarized in the Consultation Summary Report. Where appropriate, input received during the consultation was used to amend and strengthen the Guideline.

BCFSA values the feedback it receives during consultations and thanks all the credit unions who participated in the consultation on the DLA Guideline.

BCFSA treats the feedback it receives as confidential records and will not publish individual submissions or attribute content. However, please note that all submissions are subject to the Freedom of Information and Protection of Privacy Act.