national credit union stakeholders consultation ministry of labour and small and micro enterprise...

NATIONAL CREDIT UNION

STAKEHOLDERS CONSULTATION

Ministry of Labour and Small and Micro Enterprise Development

Co-operative Development Division

Focus Areas

Co-operative Legislation in T&T

Proposed Co-operative Legislation for T&T

Current focus of the Co-operative Development Division

Future plans of the Division

Co-operative Legislation in Trinidad & Tobago

Co-operatives Societies Act (CSA) Chapter 81:03

of 1971 was established to consolidate all the

existing laws into an omnibus Act to govern all

types of co-operatives

Co-operative Legislation in Trinidad & Tobago

In July 2005 , the Trinidad and Tobago Cabinet agreed that

The supervision of the financial activities of all credit unions should be integrated, under the aegis of the Central bank of Trinidad and Tobago.

The Co-operatives Societies Act (CSA) Chap. 81:03 should be amended to:

remove the supervision of the financial activities of credit unions from the mandate of the Commissioner for Co-operative Development

Proposed Co-operative Legislation in Trinidad & Tobago

Benefits of Dual regulation for Credit Unions in

Trinidad and Tobago is being considered to:

provide checks and balances between various levels of

governance

decentralize decision-making power

enhance the level of cooperation between the agencies


Benefits of Dual regulation for Credit Unions in

Trinidad and Tobago is being considered to:

identify in its initial stages Credit Unions that have the

ability to survive

identify Credit Unions in need of corporate governance

and compliance to other established standards


Major Amended Roles of the Commissioner under the Credit Union Act (CUA)

Removal of powers to –

Conduct the winding-up of a credit union;

Audit the accounts and recommend an auditor;

Approvals of maximum liability, investment of funds and mortgage loans

CDD to inform Central Bank of Trinidad and Tobago about the (Governance issues)- Inquiry, Registration and Amalgamations.


Immediate Amendments to the Co-operative Societies Act (CSA)

Section 4 – to allow for Voluntary dissolution

Section 9 – allowance for six (6) credit unions to come together to

form a co-operative

Section 41 – proposed that the $5,000.00 (beneficiary payment)

restriction e removed and all funds in the deceased member’s account

be payable to the nominated beneficiary of the deceased member;

must be transferred to by the credit union within a period of one year


Amendments to the Co-operative Societies

Act (CSA)

Section 64 & 50 – requirement that each credit union reserve

1% of its annual net surplus for an object of public utility, co-

operative development or charity; allowance for credit union

members to share in surplus when it ceases to exist and after

satisfying all statutory obligations



Act (CSA)

Section 67 – establishment of a Disputes Tribunal/s for the purpose

of hearing disputes referred by the Commissioner

Section 74 –Minister to be cloaked with the power to conscript any

necessary expertise he may find useful in the deliberation and

determination of matters before him


Major CDD proposed Amendments to the CSA

General amendments to the CSA include:

Imposition of fines and penalties are to be increased such as civil

money penalties for breaching certain sections of the Act and inclusion

of criminal penalties;

Stricter provisions for corporate governance principles and practices



Act (CSA)

General amendments to the CSA include:

Increased enforcement powers to issue directions to credit

unions/non financial co-operatives to become compliant with the Act

and to cease from engaging in unsound practices;

Creation of prudential criteria in legislation/regulations

The Co-operative Development Division Today

Co-operative Development Division is currently implementing its Three Year Plan of Action geared toward

Executive Capacity BuildingExecutive Capacity Building

Improving Service DeliveryImproving Service Delivery

Enhancing Organization & Membership ServicesEnhancing Organization & Membership Services

Networking & Association BuildingNetworking & Association Building


The Division has consequently set out to accomplish certain

objectives:

Immediate Objective 1

“To develop and strengthen the capacities of the

Cooperative Division.”

Desired outcome - A revamped Cooperative Division is in place.


“To develop and strengthen the capacities of Non-Financial

Cooperatives to operate viable enterprises and create jobs “

Desired outcome - Viable cooperatives are enabled and in operation.


The Division has consequently set out to accomplish certain objectives:


“To develop and strengthen the capacities of Junior Cooperatives to grow into upstream cooperative activities in agriculture, marketing and hospitality.”

Desired outcome - Cooperative subjects are taught in primary and high schools.

Future Plans of the Co-operative Development Division

Implementation of MLSMED strategic vision to

“encourage and develop a vibrant Micro and

Small Enterprise (MSE) and Co-operative

Sector”


Reduction of the number of Inactive Credit Unions on the

existing Register of Co-operatives including:

Developing of a Procedure Guide to wind-up Inactive

Societies

Development of the Junior Co-operative Sector (JCS) including

Establishing closer ties between Credit Unions and Junior

Co-operative Societies


Development of policies to guide the CDD’s relationship with

the stakeholder - Investment Policies giving clear directions /

guidelines and timeframes; guidelines developing governance

policies e.g. same family issues; guidelines for maximum

liability

Establishment of a Supervisory and Regulatory Unit within the

Division

Thank You!

national credit union stakeholders consultation ministry of labour and small and micro enterprise...

Documents