Credit unions perform many of the same functions as financial institutions such as providing loans, insurance and eftpos cards. Co-op Money chief operating officer Jonathan Lee, whose organisation represents 12 credit unions, said the institutions have been disadvantage by outdated laws which created an uneven playing field. "Currently credit unions don't have a corporate form, so all the assets of a credit union have to be held in trusts," Lee said. Smith's bill will allow credit unions to become incorporated, removing the need for them to have internal trustees to hold any assets. NZ Credit Union general manager Rob Collins said this created big problems for credit unions and led to lost business.

Source: New Zealand Herald April 19, 2017 05:26 UTC