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
2009 05 21 3:50 p.m.