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Regulatory Impact and Compliance Cost Statement


Credit Unions Review - Cabinet Paper 2

Hon Margaret Wilson, Minister of Commerce
[ Last Updated 6 December 2005 ]


74. A Regulatory Impact Statement has been prepared in respect of the following recommendations:

  1. to modify the statutory requirement so that credit unions are able to determine their membership qualifications;
  2. to remove the statutory requirements on borrowing, investment and reserves provided the trust deed provisions on these matters would require credit unions to adhere to a standard that is not lower than those currently set out in the Act;
  3. to permit credit unions to raise capital by issuing instruments which will have features in addition to the existing share capital provided these instruments do not expose investors to excessive risks; and
  4. to provide a mechanism for facilitating credit unions' conversion to alternative governance regimes.

75. The other recommendations are of a minor or machinery nature that do not substantially alter existing statutory arrangements.

76. A business compliance cost statement was not required.


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