78
Second Session, 50th General Assembly 2 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

1. S.40 Amdt.
Liquid assets

2. S.99 Amdt.
Examinations by auditor

3. S.102 Amdt.

Auditor's report

4. S.104 Amdt.
Duty of auditor

5. 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

1. 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

102. (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;

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