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Published byJeffry Harper Modified over 9 years ago
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NATIONAL CREDIT UNION STAKEHOLDERS CONSULTATION Ministry of Labour and Small and Micro Enterprise Development Co - operative Development Division
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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
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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
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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
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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
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Proposed Co-operative Legislation in Trinidad & Tobago 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
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Proposed Co-operative Legislation in Trinidad & Tobago 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.
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Proposed Co-operative Legislation in Trinidad & Tobago 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
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Proposed Co-operative Legislation in Trinidad & Tobago 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
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Proposed Co-operative Legislation in Trinidad & Tobago Amendments to the Co-operative Societies 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
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Proposed Co-operative Legislation in Trinidad & Tobago 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
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Proposed Co-operative Legislation in Trinidad & Tobago Amendments to the Co-operative Societies 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
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The Co-operative Development Division Today Co-operative Development Division is currently implementing its Three Year Plan of Action geared toward Executive Capacity Building Improving Service Delivery Enhancing Organization & Membership Services Networking & Association Building
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The Co-operative Development Division Today 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. Immediate Objective 2 “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.
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The Co-operative Development Division Today The Division has consequently set out to accomplish certain objectives: Immediate Objective 3 “ 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.
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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”
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Future Plans of the Co-operative Development Division 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
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Future Plans of the Co-operative Development Division 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
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Thank You!
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