Regulatory Alerts2024-11-24
Governance of Credit Union - Practice Guidance Note 5
The Office of the Registrar of Credit Union issued Practice Guidance Note 5 to regulate allowances paid to board directors and committee members, addressing excessive expenditures that threaten financial viability. Credit unions must establish documented allowance policies within their supplementary by-laws that align with organizational size, risk management, and sound governance practices. Compliance is mandatory, with the Registrar empowered to enforce corrective actions or deregistration for institutions failing to adhere to these prudent management guidelines.
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