1. NATIONAL CREDIT UNION STAKEHOLDERS CONSULTATION Ministry of Labour and Small and Micro Enterprise Development Co - operative Development Division

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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.

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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.

15. 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.

16. 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”

17. 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

18. 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

19. Thank You!