Finance committee  I'll ask my colleague to speak to that issue.

Finance committee  That is correct.

Finance committee  There should be no direct impact on Desjardins. It should not change the way in which they operate at all. The clarification of the regulatory regime will require the Province of Quebec to be clear about its intention to stand behind Desjardins as a credit union in the event of the very unlikely scenario in which Desjardins would require emergency lending assistance.

Finance committee  No.

Finance committee  That is correct.

Finance committee  That is correct.

Finance committee  I would be pleased to answer that question. These changes stem from an extensive process of consultation in the broad sense. It was flagged several years ago by the credit union movement and, in particular the credit union centrals, that changes in the regulatory landscape were intended, and it was more recently flagged in the budget of 2014.

Finance committee  Certainly. The changes in this bill reflect a dual agenda. A minute ago we were talking about the regulatory side of that agenda, which is a clarification of the regulatory framework. They also address progressing the government's intention to offer the option of federal credit unions, and in that context, clause 270 speaks to facilitating the amalgamation of credit unions for the purposes of transitioning to the federal system.

Finance committee  It facilitates the process of becoming a federal credit union. It is an extension of a prior effort.

Finance committee  That is part of the clarification of the regulatory framework for provincial credit unions. There are three elements to that framework, which include the cessation of OSFI's supervision of centrals, the removal of CDIC's lending power to credit unions, and changes to the Bank of Canada's authority to provide emergency lending assistance.

Finance committee  Correct.

Finance committee  We would say that the regulatory burden will shift but remain the same. It will shift toward the provinces in respect of the credit union centrals, which they already supervise. Then to the extent that, as the situation exists today, provincial credit unions are operating on the premise that the OSFI oversight—

Finance committee  —of the centrals suffices, provinces may need to provide stronger regulation of provincial credit unions in their jurisdiction, but that will be offset by a reduction in OSFI's supervision.

Finance committee  That previously existed.