Alberta Regulation 86/2025, titled the Credit Union (Principal) Amendment Regulation, introduces updates to the province’s regulatory framework governing credit unions under the Credit Union Act. The regulation amends the longstanding Credit Union (Principal) Regulation (AR 249/89), marking a substantial procedural and legal shift for Alberta-based credit unions that wish to transition to federal oversight under Canada’s Bank Act.

The first major change under this amendment involves the recognition of the federal Bank Act for the purposes of defining permissible continuance. Specifically, section 2 of the regulation now formally prescribes the Bank Act (Canada) as a qualifying statute under section 1(1)(v.1) of the Credit Union Act. This lays the groundwork for Alberta credit unions to legally seek federal continuance—a process in which a provincially regulated credit union transitions to become a federally incorporated entity under national legislation.

The most substantive revisions come under the newly established Part 12.1, titled Amalgamation and Continuance Under the Federal Act. This section introduces section 77.2, which codifies the process through which a credit union may apply for federal continuance. The process begins with a requirement that the credit union’s members approve the continuance through a special resolution. Following this internal approval, the credit union must then submit a detailed package of information to the Minister.

Another provision introduced in this regulation grants directors of a credit union the authority to abandon the federal continuance application without requiring further approval from members, provided the initial member resolution granted such discretion. Once a credit union has obtained the Minister’s approval and subsequently achieves federal continuance, it must notify both the Minister and the Corporation.

The regulation also introduces restrictions for credit unions that undergo federal continuance. Specifically, these institutions forfeit any right to recover assessments previously paid to the Corporation under sections 148 to 150 of the Act. Furthermore, they are excluded from receiving any share of Central’s retained earnings. These provisions appear designed to protect provincial financial interests and disincentivize opportunistic exits from the provincial system.

Section 77.3 further empowers the Corporation to establish the form and timing of the notice a credit union must give under section 175.2(3) of the Act. It also clarifies the interpretation of certain legal terms related to federal continuance. For instance, it confirms that “any other Act” includes the federal Bank Act and defines “market conduct rules” as those codes and standards governing how financial institutions engage with customers and the public.

Alberta (87/2025) May 14, 2025
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