Legislation introduced today will replace the Credit Union Act with a new modernized act which better reflects today�s standards. A number of proposed changes will create a more positive business climate for credit unions. By making these changes, the department is updating governance, accountability and sound business practices for credit unions.

"Introducing new legislation reflects the maturity of the credit union system in this province," said the Honourable Kevin O�Brien, Minister of Government Services. "Credit unions continue to thrive with 12 credit unions operating in the province with assets of $630 million. Despite the global economic slowdown, credit unions in our province continue to do well."

The changes in the new act are mostly administrative in nature and reduce red tape for the system. It removes some administrative requirements from legislation and places them under the responsibility of the Board of Directors of Credit Unions. Consultations were held with credit unions on these changes and were fully endorsed. In addition, credit unions specifically asked that legislation be changed to allow them to sell life insurance products in their branches.

"Credit unions in the province can already sell life insurance products; however, it is done through a subsidiary at a separate office from its branches," said Minister O�Brien. "The Provincial Government is giving credit unions the ability to provide these services to their members at less cost by providing the opportunity for credit unions to sell life insurance products in their branches. This decision could provide the potential for increased choice for credit union members, especially in rural areas."

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Media contact:

Vanessa Colman-Sadd
Director of Communications
Department of Government Services
709-729-4860, 682-6593
vanessacolmansadd@gov.nl.ca