Review of the Friendly Societies and Credit Unions Act 1982.
In December 2002, the Ministry released a Discussion Paper and sought submissions on proposed amendments to the Friendly Societies and Credit Unions Act 1982 (FSCUA). The submissions revealed a wide range of views within the industry requiring further investigation and work before any legislative amendment could be progressed. At the request of the then Minister of Commerce, the two associations of credit unions, which together represent approximately 90 per cent of credit unions, developed a Statement of Agreed Principles, which identified changes they would like made to the FSCUA. Their proposal was submitted to the Minister in November 2003. The Ministry considered the proposal, and after consultation with key stakeholders, presented its recommendations to Cabinet in August 2004.
On 17 September 2004, the Government announced its decisions on the review. It accepted most of the industry's proposals and requested that further work be done on some other proposals. In this final phase of the review, the Ministry will be exploring ways to allow credit unions to grow without exposing investors to significant unmanageable risks.
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