Pace Savings & Credit Union
From Wikipedia, the free encyclopedia
 | |
 Pace Savings & Credit Union in Markham | |
| Company type | Credit union |
|---|---|
| Industry | Financial services |
| Defunct | August 11, 2022 |
| Fate | Liquidation; operating assets absorbed into Alterna Savings in 2022 |
| Successor | Alterna Savings |
| Headquarters | Vaughan, Ontario , |
| Products | Savings; chequing; consumer loans; mortgages |
| Revenue | $34.5 million CAD (2019) |
| Total assets | $1.1 billion CAD (2019)[1] |
| Subsidiaries |
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| Website | www |
PACE Savings & Credit Union Limited was a Canadian credit union based in Ontario. Pace grew through consolidation of several smaller credit unions in Ontario but the company was placed under administration by Financial Services Regulatory Authority of Ontario (FSRA) (previously the Deposit Insurance Corporation of Ontario) in September 2018 after the regulator found evidence of civil fraud, potential self-dealing by the CEO Larry Smith, and poor governance practices. After leaving administration in January 2020, the credit union went into administration again in November 2020 after the new CEO and several recently appointed directors resigned following the disclosure of additional regulatory problems at subsidiary Pace Securities Corp.[2][3]
On 11 July 2022, the majority of assets and employees of PACE transferred to Alterna Savings following a purchase administered by the Financial Services Regulatory Authority of Ontario.[4] KPMG is overseeing the liquidation of PACE's remaining non-operational assets and liabilities, including litigation against the former president and the CEO, and various insurance claims.[5]
Pace participated in the consolidation of the Ontario's credit unions by purchasing or merging with at least six other credit unions since 2000. In 2002, Greater Toronto Area (GTA) Savings and Credit Union merged with PACE.[6] In April 2012, PACE purchased McMaster Savings and Credit Union Limited, which had two branches and $30 million in assets at the time of the transaction.[7] Later in 2012, PACE announced that it would amalgamate with Peoples Credit Union of Innisfil and ETCU Financial Credit Union. The ECTU transaction closed on October 1, 2012, and the Peoples Credit Union transaction closed on 1 January 2013. At the time, Peoples had four branches and $150 million in assets.[8] There was a failed deal in 2014 when a letter of intent regarding a merger with the much larger Alterna Savings was announced in April, but the merger was never completed.[9] Additional deals were finalized in 2017 when PACE purchased Durham Educational Employees' Credit Union Limited and London Fire Fighters' Credit Union Limited.[10][11] A deal to purchase City Savings & Credit Union Ltd. was announced on 24 July 2017, however, it was not completed and City Savings merged with Alterna Savings in 2019.[12][13]