The case of Pace Credit Union & Savings Limited v. Financial Services Regulatory Authority of Ontario (FSRA), 2024 ONSC 4489, involves an application for leave to bring a class action against FSRA and its CEO, Mark White. Key points include:

• Background:

  • FSRA became the administrator of Pace Savings & Credit Union in 2019 after amalgamating with the Deposit Insurance Corporation of Ontario (DICO), which had placed Pace under administration due to governance concerns.
  • The applicant, Frank Losak, purchased securities of Pace while it was under FSRA's administration and alleges that FSRA and White misled investors by failing to provide a valid Offering Statement, required under the Credit Unions Act.

• Claims:

  • Losak sought to represent a class of individuals who bought Pace securities during FSRA's administration.
  • He claims damages from FSRA for misrepresentation and regulatory failures but was denied leave to pursue claims against Mark White individually, as White is protected by statutory immunity.

• Decision:

  • The court granted Losak leave to pursue his claim against FSRA, citing a viable cause of action.
  • Leave was denied for claims against Mark White due to statutory protections under the FSRA Act.
  • The court ordered that the statement of claim be issued nunc pro tunc (retroactively) to February 28, 2024.

• Outcome: FSRA must pay $25,000 in costs to Losak.

This ruling allows the class action against FSRA to proceed but not against White personally.