- GOVERNANCE
- Ownership & Profit Sharing
- Investment Shares
Grow with us with investment shares.
Every so often, credit unions give their adult members the opportunity to invest in the success and financial well-being of their chosen financial institution. This is done by allowing members to purchase investment shares in the credit union itself.
Investment shares are an investment in the capital of Moya Financial. These shares offer members the potential to realize an excellent rate of return while helping build the credit union’s capital base for future growth, development, stability, and investment in the community.
Members can feel good about investing in a financial institution 100% owned by its members. All of Moya’s profits are re-invested in delivering exceptional products and services for our members and investing in the growth and development of our communities.
While not new to the credit union industry, investment shares are a new product for Moya Financial. We issued our first Class A investment shares for sale to members in 2021.
See below for legal descriptions of our offerings, the related terms and conditions, and a summary of how investment shares work.
Good to Know
Investment shares are a moderate-risk investment. Each share is worth one Canadian dollar and the value will stay constant over time. These shares are securities that are non-cumulative, non-voting, and non-participating. It is important to note that investment shares, and returns on them, are not insured or guaranteed by the Financial Services Regulatory Authority of Ontario. For more information, visit FSRA's website.
Here’s how investment shares work:
How are these shares different from other stocks or common shares?
These are the main differences between common stocks/shares and Moya’s Class A investment shares, Series 1:
- Subscriptions for the Class A investment shares, Series 1, are available to Ontario-resident Moya members only.
- Income earned on non-registered Class A investment shares is taxed as interest/other income. Income typically earned on common shares is taxed as dividends.
- You cannot trade (buy or sell) Moya Class A investment shares on any secondary market (stock exchange).
- You can have confidence in your investment, knowing your Class A investment shares, Series 1, have a fixed redemption value,* unlike common shares, which are constantly revalued by the market based on many variables.
*Redemptions are not permitted in the first five years after the shares are issued, and are limited to 10% of the shares issued and outstanding on the credit union’s financial statements at the end of the preceding fiscal year.
How long is the investment term?
This investment should be considered very long term. The shares cannot be redeemed until after five years from the issue date, unless the shareholder dies or is expelled from membership in the credit union.
If a member wishes to redeem their shares after the initial five-year period, they can do so only through a Moya branch; there is no secondary market for Moya’s Class A investment shares, Series 1. Moya Financial will first attempt to facilitate a transfer by matching the seller with a buyer. If no buyer can be found, the shares will be redeemed.
Annual redemptions are limited to 10% of the amount of shares outstanding at the beginning of the year. Redemption requests above that limit will be carried forward to the following year. All redemptions and transfers must be approved by the Moya Financial Board of Directors and are subject to applicable law.
Can I make a divestment request?
The regulations regarding investment shares require that members who wish to sell must complete Moya’s Investment Shares Transfer Request – Seller form. Members are then added to a waiting list of sellers, which is periodically matched with a corresponding list of potential buyers, so that the transfer of shares can be completed. If a member wishes to sell their shares before the initial five-year period, they can do so only through a Moya branch.
Members who wish to sell their investment shares should be aware that requests to transfer shares can take some time. Members cannot count on immediate liquidity should they need to access funds unexpectedly.
Can I make a purchase request?
Members who wish to purchase investment shares can complete Moya’s Investment Shares Transfer Request – Buyer form, and be added to the waiting list.
What is the dividend rate?
The Board has defined 4% of the redemption amount as the appropriate dividend rate on investment shares for the first five fiscal years after the shares are issued.
Dividends (taxed as interest/other income) are not guaranteed to be declared annually and are non-cumulative (for example, if they are not paid one year, they are not doubled the following year). No dividend at all, or a dividend of less than 4%, may be declared in any particular fiscal year.
How are the dividends paid?
If declared, the payment of investment share dividends will be in cash; in additional Class A investment shares, Series 1; or in a combination of the two, and on such terms as may be determined from time to time by the Board of Directors.
Are shares covered by deposit insurance?
No, Moya’s Class A investment shares, Series 1, are not covered by deposit insurance from the Financial Services Regulatory Authority of Ontario. For more information, visit FSRA's website.