Members Bill to provide legal status to Credit Unions

Peseta Sam Lotu-Iiga

MP for Maungakiekie

27 June 2013

Media Statement

Members Bill to provide legal status to Credit Unions

Peseta Sam Lotu-Iiga, MP for Maungakiekie, has announced that he will introduce a Private Members Bill to Parliament aimed at providing legal status to Credit Unions.

Credit Unions currently operate under the Friendly Society and Credit Unions Act 1982 and are unincorporated entities without their own legal status.

“This is an unusual situation for a modern financial institution as assets of the credit union need to be held in a trust by credit union trustees, who are also members of the credit union board.” Mr Lotu-Iiga says

“This adds unnecessary compliance costs, reduces organisational responsiveness and confuses members of the credit union and public.”

“This bill is aimed at giving these institutions their own legal status, clarifying an archaic administrative process and will mean that credit unions will invest more of their funds in assisting their members and not on compliance.” Mr Lotu-Iiga says

“It also reinforces part of our Business Growth Agenda, through strengthening our Capital Markets, building investor confidence and growing the economy.”

“I want to thank Henry Lynch, Chief Executive of the NZ Association of Credit Unions, for bringing this issue to me. I look forward to placing a bill in the ballot, getting it drawn, and then progressing it through the House.” Mr Lotu-Iiga says

--ENDS—