Regulatory changes for Nova Scotia credit unions have been finalized and will come into effect on July 1.
Changes and amendments under the Credit Union Act will include modernizing membership rules, such as clarifying the process for notifying members prior to a branch closure and requiring bylaws to include the appeal process for member termination.
“We are pleased that the regulations and oversight of credit unions will continue to foster a strong financial sector and support communities,” said Finance and Treasury Board Minister Karen Casey, in a press release.
Credit unions and Atlantic Central will now be able to foster growth across provincial boundaries to encourage diversification and to manage risk, in keeping with recent federal changes, according to the province.
The federal government changed its legislative and regulatory framework making oversight of Atlantic Central, a Nova Scotia incorporated company, a provincial responsibility. Atlantic Central provides Atlantic credit unions with liquidity, payment and trade services.
According to the province, a regular review and update of the Credit Union Act and regulations is required every seven years to ensure that oversight of the credit union sector remains current and relevant.
The regulations will improve efficiencies and align Nova Scotia legislation with other Atlantic provinces.
Regulations are being released now to provide credit unions with time to make the appropriate adjustments.