Second

Session, 50th General Assembly

Charles III, 2024

BILL 78

AN ACT TO AMEND THE

CREDIT UNION ACT, 2009 NO. 2

Received

and Read the First Time ................................................................

Second

Reading ............................................................................................

Committee .....................................................................................................

Third

Reading ...............................................................................................

Royal

Assent .................................................................................................

HONOURABLE SARAH

STOODLEY

Minister of Digital

Government and Service Newfoundland and Labrador

Ordered to be printed by

the Honourable House of Assembly

EXPLANATORY NOTES

This Bill would amend the Credit Union Act, 2009 to

authorize the guarantee corporation to exempt a credit union from the

liquidity and investment requirements prescribed in the regulations, set the

liquidity and investment requirements for the credit union and revoke the

exemption;

require an auditor of a credit

union to conduct examinations in accordance with Canadian Auditing Standards;

require an auditor of a credit

union to indicate in the auditor's report whether the financial statements were

prepared in accordance with International Financial Reporting Standards; and

require that an auditor of a

credit union provide a copy of all documents prepared by the auditor that

highlight the weaknesses and deficiencies in the financial affairs of the

credit union.

A BILL

AN ACT TO AMEND THE CREDIT UNION ACT, 2009

NO. 2

Analysis

S.40 Amdt .

Liquid assets

S.99 Amdt .

Examinations by auditor

S.102 Amdt .

Auditor's

report

S.104 Amdt .

Duty of auditor

S.136 Amdt .

Powers

Be it enacted by the Lieutenant-Governor and

House of Assembly in Legislative Session convened, as follows:

SNL2009 cC-37.2

as amended

Section 40 of the Credit Union Act, 2009 is amended by adding immediately after

subsection (2) the following:

(3) Notwithstanding subsections (1) and (2), the guarantee corporation may, where it determines it necessary,

(

a) exempt a credit union from the liquidity and investment

requirements prescribed in the regulations; and

(

b) set the liquidity and investment requirements

for the credit union.

(4) The guarantee

corporation may, where it considers it necessary, revoke an exemption provided

under paragraph (3)(a).

(5) Where the guarantee

corporation revokes an exemption in accordance with subsection (4), the credit

union shall comply with the liquidity and investment requirements in the

regulations.

2. Subsection 99(2) of the Act is amended by

deleting the words "International Financial Reporting Standards" and

substituting the words "Canadian Auditing Standards".

3. (1) Subsection 102(1) of the Act is repealed

and the following substituted:

Auditor's report

(1) The auditor of a credit union shall make a written report

regarding the financial statements referred to in subsection 91 (1) to the members of

the credit union not fewer than 10 days before the date of the annual meeting

of the member.

(2) Section 102 of the Act is amended by adding

immediately after subsection (1) the following:

(1.1) A report referred to in subsection (1) shall indicate

whether

(

a) the financial statements have been prepared in

accordance with International Financial Reporting Standards; and

(

b) the examination of the financial statements

has been made in accordance with the with Canadian

Auditing Standards.

4. Subsection 104(4) of the Act is amended by

adding immediately after the words "management letter" the words

"or other documents".

5. Subsection 136(1) of the Act is amended by

adding immediately after paragraph (

c) the following:

(c.1) exempt a credit union from the liquidity and

investment requirements prescribed in the regulations and set the liquidity and

investment requirements for the credit union;

King's Printer