Have your say on changes to laws relating to credit unions and friendly societies

Friendly Societies and Credit Unions (Regulatory Improvements) Amendment Bill

This bill is a Members’ bill in the name of Stuart Smith. It’s aim is to amend the Friendly Societies and Credit Unions Act 1982 to reform the law relating to Friendly Societies and Credit Unions.

The bill intends to remove unnecessary operating and compliance costs, promote greater efficiency, innovation, and accountability, bring credit unions into alignment with other financial service providers in New Zealand, and maintain the element of mutuality and the requirement of a common bond between members.
To achieve these aims, the bill includes measures to:
• simplify the statutory objects of an association of credit unions to cover generally the conduct of activities for the benefit of its members and as authorised by its rules;
• provide for the incorporation of credit unions;
• enable credit unions and associations of credit unions in the pursuance of their objects to have all the powers of a natural person;
• permit credit unions to provide financing to SMEs that are owned by or otherwise closely associated with a member of the credit union;
• reduce the minimum number of credit union members needed for an association of credit unions to be validly constituted from 7 to 2.
Committee Chairperson Chris Bishop encourages the public to submit on the bill: “The committee would like to hear from individuals and organisations with experience and views on the important issues this bill deals with. The issues raised by submissions can greatly assist the committee in its consideration of the bill, and can be influential in any amendments the committee proposes to the bill.”



Tell the Finance and Expenditure Committee what you think
Send your submission on the bill by midnight on Thursday 20 July 2017.

For more details about the bill:
• Read the full content of the bill
• Get more details about the bill
• What’s been said in Parliament about the bill

ENDS

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