Regulatory Impact and Compliance Cost Statement
74. A Regulatory Impact Statement has been prepared in respect of the following recommendations:
- to modify the statutory requirement so that credit unions are able to determine their membership qualifications;
- 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;
- 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
- 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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