The Ministry of Finance is now reviewing credit union legislation, a process that will proceed over the next year. Every ten years there is a review and consequently an opportunity to think critically about how financial services are regulated. In BC, the two principal statutes are the Financial Institutions Act and the Credit Union Incorporation Act.
The last decade has seen some big changes in technology and also in the way international banks are regulated. Technology has changed the way credit unions do business (new service channels online, and mobile), process transactions (paperless payments), and communicate generally. In addition, technology has introduced a host of new non-traditional service providers; virtual banks, online lenders, private payment services, digital currencies, and more. The failure of some large banks has prompted scrutiny of large scale financial engineering arrangements and of the role of regulators.
CCEC has made a submission to the Ministry in September that attempts to ensure the potential for communities to continue to organize and provide themselves with financial services; using the co-operative model. CCEC is vocal in asserting that the credit union model, at the local level, is to be facilitated and not burdened with regulation. CCEC substantially endorses a consistent legal framework for all credit unions with transparency and accountability among the government authorities.